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K. Hovnanian collects needed consents to amend 7¼% notes due 2020
By Susanna Moon
Chicago, Sept. 29 – Hovnanian Enterprises, Inc. said its wholly owned subsidiary, K. Hovnanian Enterprises, Inc., obtained the needed consents to amend its 7¼% senior secured first-lien notes due 2020.
The consent solicitation ended at 5 p.m. ET on Sept. 29, extended from 5 p.m. ET on Sept. 25 and, before that, 5 p.m. ET on Sept. 22.
The company said on Sept. 25 that it extended and updated the terms of the consent solicitation, increasing the consent payment and modifying the proposed amendments.
The consent payment was doubled to $5.00 per $1,000 principal amount of notes.
The company solicited 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.
The consent solicitation began on Sept. 11 concurrently with the consent solicitation for K. Hovnanian’s senior secured second-lien notes due 2020, which ended on Sept. 22.
The company said on Sept. 23 that it secured the needed consents to amend its 9 1/8% notes from the holders of a majority of the notes.
The solicitation agents were J.P. Morgan Securities LLC (212 270-1200 or 800 245-8812), Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) and Credit Suisse Securities (USA) LLC (212 325-2476 or 800 820-1653). Global Bondholder Services Corp. (212 430-3774 or 866 470-4200) was 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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