New Issue: K. Hovnanian Enterprises $150 million 10-year notes yield 6½%

By Reshmi Basu

New York, Feb 26 - K. Hovnanian Enterprises Inc. priced a $150 million offering of 6 3/8% 10-year senior notes at 99.057 Thursday to yield 6½%, according to a syndicate source.

Price talk was for a yield in the area of 6 3/8%.

Credit Suisse First Boston, Citigroup, UBS Investment Bank and Wachovia Securities were joint bookrunners on the Rule 144A issue.

Hovnanian, a Red Bank, N.J. residential builder, will use proceeds to redeem its 9 1/8% senior notes due 2009 and for general corporate purposes.

Issuer:	K. Hovnanian Enterprises, Inc.
Amount:	$150 million
Maturity:	Dec. 15, 2014
Security description:	Senior notes
Bookrunners:	Credit Suisse First Boston LLC, Citigroup, UBS Investment Bank, Wachovia Securities
Coupon:	6 3/8%, starting June 15, 2004
Price:	99.057
Yield:	6½%
Spread:	245 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points
Pricing date:	Feb. 26
Settlement date:	March 18 (T+15)
Ratings:	Moody's Ba2
	Standard & Poor's: BB
Price talk:	6 3/8%

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