Published:
Hovnanian Announces Pricing of Notes
Hovnanian Announces Pricing of Notes
RED BANK, N.J., May 16 /PRNewswire-FirstCall/ -- Hovnanian Enterprises,
Inc. (NYSE: HOV) announced today that it priced $600.0 million aggregate
principal amount of 11 1/2% senior secured notes due May 1, 2013 in a private
placement. The Company also entered into an amendment to its revolving credit
agreement, which decreases total commitments thereunder to $300.0 million,
increases the amount of collateral, and substantially eliminates maintenance
covenants. The amendment will become effective upon the closing of the notes
offering, which is expected to occur on May 27, 2008.
The notes will be secured on a second-priority lien basis by substantially
all the assets owned by the Company and guarantors of the notes to the extent
such assets secure obligations under the amended revolving credit agreement.
Such assets may also secure certain other permitted indebtedness.
The Company intends to use the net proceeds from the offering of the notes
to repay amounts outstanding under its existing revolving credit agreement and
for general corporate purposes.
The notes will be offered withinthe United States only to "qualified
institutional buyers" pursuant to Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). The notes will also be offered outsidethe
United States to non-U.S. investors. The notes will not be registered under
the Securities Act and may not be offered or sold inthe United States absent
registration or an applicable exemption from registration requirements. This
announcement does not constitute an offer to sell or the solicitation of an
offer to buy such notes in any jurisdiction in which such an offer or sale
would be unlawful.
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian,
Chairman, is headquartered inRed Bank, New Jersey. The Company is one of the
nation's largest homebuilders with operations inArizona,California,
Delaware,Florida,Georgia,Illinois,Kentucky,Maryland,Michigan,Minnesota,
New Jersey,New York,North Carolina,Ohio,Pennsylvania,South Carolina,
Texas,Virginia andWest Virginia. The Company's homes are marketed and sold
under the trade names K. Hovnanian Homes, Matzel & Mumford, Forecast Homes,
Parkside Homes, Brighton Homes, Parkwood Builders, Windward Homes, Cambridge
Homes, Town & Country Homes, Oster Homes, First Home Builders ofFlorida and
CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities,
the Company is also one of the nation's largest builders of active adult
homes.
Forward-Looking Statements
All statements in this Press Release that are not historical facts should
be considered as "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements involve
known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks, uncertainties and other factors
include, but are not limited to, (1) changes in general and local economic and
industry and business conditions, (2) adverse weather conditions and natural
disasters, (3) changes in market conditions and seasonality of the Company's
business, (4) changes in home prices and sales activity in the markets where
the Company builds homes, (5) government regulation, including regulations
concerning development of land, the home building, sales and customer
financing processes, and the environment, (6) fluctuations in interest rates
and the availability of mortgage financing, (7) shortages in, and price
fluctuations of, raw materials and labor, (8) the availability and cost of
suitable land and improved lots, (9) levels of competition, (10) availability
of financing to the Company, (11) utility shortages and outages or rate
fluctuations, (12) levels of indebtedness and restrictions on the Company's
operations and activities imposed by the agreements governing the Company's
outstanding indebtedness, (13) operations through joint ventures with third
parties, (14) product liability litigation and warranty claims, (15)
successful identification and integration of acquisitions, (16) significant
influence of the Company's controlling stockholders, (17) geopolitical risks,
terrorist acts and other acts of war and (18) other factors described in
detail in the Company's Form 10-K for the year ended October 31, 2007.
SOURCE Hovnanian Enterprises, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
Daily NewsTags: Building and Construction, Real Estate, Banking and Finance, new jersey
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