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 in a private placement. The notes will be guaranteed by the company and substantially all of its subsidiaries. The sale of the notes is expected to be consummated on or about September 25, 2025, subject to customary closing conditions.
The company intends to 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, amongst other purposes.
Hovnanian Enterprises, Inc. aims to repay in full all outstanding loans under its senior secured 1.75 lien term loan facility due 2028 at par, plus accrued and unpaid interest to, but excluding, the prepayment date, and pay all fees and expenses related thereto and the offering of the notes.
The company, founded in 1959, is headquartered in Matawan, New Jersey, and operates in multiple states across the United States. As one of the nation’s largest homebuilders, the company's homes are marketed and sold under the trade name K. Hovnanian Homes. Additionally, the company’s subsidiaries, as developers of K. Hovnanian’s Four Seasons communities, make the company one of the nation’s largest builders of active lifestyle communities. As a result of these announcements, the company's shares have moved -1.75% on the market, and are now trading at a price of $152.99. Check out the company's full 8-K submission here.
