Hovnanian announces senior notes offering

Hovnanian (HOV) Enterprises’ K. Hovnanian Enterprises intends to offer, subject to market conditions $450M aggregate principal amount of Senior Notes due 2031 and $450M aggregate principal amount of Senior Notes due 2033 in a private placement.The Notes will be guaranteed by the Company and substantially all of its subsidiaries. K. Hovnanian 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 at a redemption price equal to 104.000% of the principal amount thereof and the entire outstanding principal amount of its 11.75% Senior Secured 1.25 Lien Notes due 2029 at a redemption price equal to 100.000% of the principal amount thereof plus the applicable “make-whole” premium, in each case, plus accrued and unpaid interest to, but excluding, the redemption date, 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.