New Issue: Hovnanian prices $42 million tap of notes due 2016 at par to yield 6¼%

By Paul A. Harris

Portland, Ore., Sept. 11 - K. Hovnanian Enterprises, Inc. priced a $41.581 million tack-on to its non-callable 6¼% senior notes due Jan. 15, 2016 (existing ratings Caa2/CCC/) at par to yield 6¼% on Wednesday, according to an informed source.

Credit Suisse Securities (USA) LLC was the bookrunner for the public offering.

The Red Bank, N.J.-based homebuilder plans to use the proceeds to fund the redemption of all of its outstanding 6½% senior notes due 2014 and 6 3/8% senior notes due 2014.

Issuer:	K. Hovnanian Enterprises, Inc.
Amount:	$41,581,000
Maturity:	Jan. 15, 2016
Security description:	Tack-on to 6¼% senior notes due Jan. 15, 2016
Bookrunner:	Credit Suisse Securities (USA) LLC
Coupon:	6¼%
Price:	Par
Yield:	6¼%
Spread:	563 bps
Call protection:	Non-callable
Trade date:	Sept. 11
Settlement date:	Sept. 16 with accrued interest
Existing ratings:	Moody's: Caa2
	Standard & Poor's: CCC
Distribution:	SEC registered
Marketing:	Quick to market
Original issue:	$300 million issue priced at 98.429 to yield 6.46% in August 2005

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