Hovnanian Enterprises, Inc. has announced the pricing of an offering of $450 million aggregate principal amount of 8.000% senior notes due 2031 and $450 million aggregate principal amount of 8.375% senior notes due 2033. The sale of the notes is expected to be consummated on or about September 25, 2025, subject to customary closing conditions.
The company's wholly owned subsidiary, K. Hovnanian Enterprises, Inc., will use the net proceeds from the offering of the notes to fund the redemption of the entire outstanding principal amount of its 8.0% senior secured 1.125 lien notes due 2028 and the entire outstanding principal amount of its 11.75% senior secured 1.25 lien notes due 2029. Additionally, the company intends to repay in full all outstanding loans under its senior secured 1.75 lien term loan facility due 2028 and pay all fees and expenses related to the redemption and the offering of the notes.
Hovnanian Enterprises, Inc. was founded in 1959 and is headquartered in Matawan, New Jersey. The company, through its subsidiaries, operates as one of the nation’s largest homebuilders with operations in various states. The company’s homes are marketed and sold under the trade name K. Hovnanian Homes, and it is also one of the nation’s largest builders of active lifestyle communities through its subsidiaries.
The notes have not been registered under the Securities Act of 1933, as amended, any state securities laws, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the securities act and applicable state securities or blue sky laws. Following these announcements, the company's shares moved 5.62%, and are now trading at a price of $155.71. If you want to know more, read the company's complete 8-K report here.
