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K. Hovnanian gets needed consents for 9 1/8% notes, extends solicitation for 7¼% notes
By Susanna Moon
Chicago, Sept. 23 – Hovnanian Enterprises, Inc. said subsidiary K. Hovnanian Enterprises, Inc. secured consents to amend its 9 1/8% senior secured second-lien notes due 2020 from the holders of a majority of the notes.
The consent solicitation ended at 5 p.m. ET on Sept. 22.
The supplemental indenture to the notes will become operative on the payment date, according to a press release.
The company also extended the consent solicitation for its 7¼% senior secured first-lien notes due 2020 to 5 p.m. ET on Sept. 25.
The solicitation for the two series of notes began Sept. 11. Holders must be of record as of 5 p.m. ET on Sept. 10.
As previously announced, the consent payment is $2.50 per $1,000 principal amount of notes.
The company is soliciting consents to modify the definition of permitted debt under the note indentures to allow K. Hovnanian and its restricted subsidiaries to incur additional debt of up to $300 million.
Neither of the consent solicitations is dependent upon the results of the other, and neither is conditioned upon the raising of any debt, the company previously said.
J.P. Morgan Securities LLC (212 270-1200 or 800 245-8812, attn: liability management group), Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745, attn: liability management group) and Credit Suisse Securities (USA) LLC (212 325-2476 or 800 820-1653, attn: liability management group) are the solicitation agents. Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) is the information and tabulation agent.
The Red Bank, N.J.-based company designs, constructs, markets and sells townhomes, condominiums and single-family homes.
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