By Paul A. Harris
St. Louis, Nov. 15 - Hovnanian Enterprises priced a quick-to-market $300 million of bonds in two tranches Monday, according to market sources.
The Yardley, Pa., homebuilder sold $200 million of senior notes due Jan. 15, 2015 (Ba2/BB/BB+) at par to yield 6¼%. Price talk was in the 6¼% area.
The company also sold $100 million of senior subordinated notes due Jan. 15, 2010 (Ba3/B+/BB-) at par to yield 6%. Price talk was 6% to 6¼%.
Credit Suisse First Boston, Citigroup, UBS Investment Bank and Wachovia Securities ran the books for the Rule 144A/Regulation S issue.
Proceeds will be used to repay debt under the company's revolving credit facility and for general corporate purposes.
| Issuer: | Hovnanian Enterprises
|
| Amount: | $300 million
|
| Bookrunners: | Credit Suisse First Boston, Citigroup, UBS Investment Bank, Wachovia Securities
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 30
|
|
|
| Senior tranche
|
| Amount: | $200 million
|
| Maturity: | Jan. 15, 2015
|
| Security description: | Senior notes
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 205 basis points
|
| Call protection: | Non-callable for the life of the bond
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Price talk: | 6¼% area
|
|
|
| Subordinated tranche
|
| Amount: | $100 million
|
| Maturity: | Jan. 15, 2010
|
| Security description: | Senior subordinated notes
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 246 basis points
|
| Call protection: | Non-callable for the life of the bond
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Fitch: BB-
|
| Price talk: | 6%-6¼%
|
|
|
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