By Paul A. Harris
St. Louis, Aug. 1 - Hovnanian Enterprises Inc. priced an upsized $300 million issue of 10.5-year senior notes (Ba1/BB+) at 98.429 with a 10¼% coupon to yield 6.46% in a quick-to-market transaction, according to syndicate sources.
The yield resulted in a 213 basis point spread to Treasuries, approximately on top of the Treasuries plus 215 basis point price talk.
Citigroup, Banc of America Securities LLC, Credit Suisse First Boston and JP Morgan were the bookrunners.
Proceeds will be used to repay debt and for general corporate purposes.
The issue was upsized from $250 million.
Hovnanian is a Red Bank, N.J., residential home builder.
| Issuer: | Hovnanian Enterprises Inc.
|
| Amount: | $300 million (upsized from $250 million)
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| Maturity: | Jan. 15, 2016
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| Security description: | Senior notes
|
| Bookrunners: | Citigroup, Banc of America Securities LLC, Credit Suisse First Boston, JP Morgan
|
| Coupon: | 6¼%
|
| Price: | 98.429
|
| Yield: | 6.46%
|
| Spread: | 213 basis points
|
| Call protection: | Non-callable for the life of the bond
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Price talk: | 215 basis points area
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