By Paul A. Harris
St. Louis, June 30 - Hovnanian Enterprises, Inc. priced an upsized $125 million offering of series A perpetual preferred stock (Ba3/B+), according to a press release issued Thursday by the company.
The shares priced at $25 and will pay a 7 5/8% dividend.
Credit Suisse First Boston, UBS Investment Bank and Wachovia Securities were the bookrunners for the registered offering. JMP Securities was the joint lead manager. The co-managers were Citigroup, RBC Capital Markets, BB&T Capital Markets, JP Morgan, KeyBanc Capital Markets, Piper Jaffray, BNP Paribas, Calyon Securities, Comerica Securities and RBS Greenwich Capital.
Proceeds will be used to repay bank debt.
The offering was upsized from $100 million. The number of shares increased to five million from four million.
Hovnanian is a Red Bank, N.J.-based homebuilder.
| Issuer: | Hovnanian Enterprises, Inc.
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| Amount: | $125 million (increased from $100 million)
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| Security description: | Series A perpetual preferred stock
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| Shares: | Five million (increased from four million)
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| Maturity: | Perpetual
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| Dividend: | 7 5/8%
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| Price: | $25
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| Call protection: | Five years
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| Bookrunners: | Credit Suisse First Boston, UBS Investment Bank, Wachovia Securities
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| Joint lead manager: | JMP Securities
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: B+
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