By Paul A. Harris
Portland, Ore., Feb. 3 - K. Hovnanian Enterprises, Inc. priced a $155 million issue of 11 7/8% 4.5-year senior notes (Caa2/CCC-/) at 97.453 to yield 12 5/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 12¾% area yield talk. The reoffer price came in line with discount talk of 2 points to 3 points.
Credit Suisse Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the issue, which was slightly upsized from $150 million.
The Red Bank, N.J.-based homebuilder plans to use the proceeds to refinance existing notes due 2012 and 2013.
The company is also in the market with a concurrent offering of $125 million of equity and equity-linked securities.
| Issuer: | K. Hovnanian Enterprises, Inc.
|
| Face amount: | $155 million, increased from $150 million
|
| Proceeds: | $151.05 million (approximate)
|
| Maturity: | Oct. 15, 2015
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Coupon: | 11 7/8%
|
| Price: | 97.453
|
| Yield: | 12 5/8%
|
| Spread: | 1,056 bps
|
| Call protection: | Non-callable
|
| Equity clawback: | 35% at 111.875 until April 15, 2014
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC-
|
| Distribution: | SEC registered
|
| Price talk: | 12¾% area with 2 to 3 points OID
|
| Marketing: | Roadshow
|
© 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.
