K. Hovnanian extends consent solicitation for 7¼% notes, increases fee

By Marisa Wong

Madison, Wis., Sept. 25 – Hovnanian Enterprises, Inc.’s wholly owned subsidiary, K. Hovnanian Enterprises, Inc., updated the terms of its previously announced consent solicitation to amend the indenture governing its 7¼% senior secured first-lien notes due 2020, according to a press release.

The consent solicitation will now expire at 5 p.m. ET on Sept. 29. The expiration date was previously extended to 5 p.m. ET on Sept. 25 from 5 p.m. ET on Sept. 22.

In addition, the company increased the consent consideration and modified the proposed amendments.

Holders who deliver consents by the expiration date will now be eligible to receive a consent consideration equal to $5.00 per $1,000 principal amount of notes. The consent payment was previously $2.50 per $1,000 principal amount.

The company is soliciting consents to modify the definition of permitted debt under the note indenture to allow K. Hovnanian, Hovnanian Enterprises and its restricted subsidiaries to incur additional debt of up to $300 million, provided that the net cash proceeds of that debt initially incurred be pledged as collateral under the indenture and not be used to invest in assets that are not considered as collateral under the indenture.

Holders who have previously delivered consents do not need to redeliver their consents or take any other action in order to consent or receive the increased consent consideration, the release noted.

The consent solicitation began on Sept. 11 concurrently with the consent solicitation for K. Hovnanian’s 9 1/8% notes, which ended on Sept. 22.

Holders must be of record as of 5 p.m. ET on Sept. 10 to participate.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.