New Issue: K. Hovnanian Enterprises sells $150 million 10-year notes to yield 7¾%

By Paul A. Harris

St. Louis, May 2 - K. Hovnanian Enterprises, Inc. priced a quick-to-market $150 million of senior subordinated notes due May 15, 2013 (B2/B+) at par on Friday to yield 7¾%.

Credit Suisse First Boston and Citigroup were bookrunners. Deutsche Bank Securities Inc. was joint lead manager. The co-managers were Fleet Securities, Wachovia Securities and SunTrust Robinson Humphrey

Proceeds from the Rule 144A deal will be used for general corporate purposes.

The issuer is a Red Bank, N.J.-based homebuilder.

Issuer:	K. Hovnanian Enterprises, Inc.
Amount:	$150 million
Maturity:	May 15, 2013
Security Description:	Senior subordinated notes due 2013
Managers:	Credit Suisse First Boston, Citigroup (joint books) Deutsche Bank Securities (joint lead manager)
Co-managers:	Fleet Securities, Wachovia Securities, SunTrust Robinson Humphrey
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	387 basis points over the 3 7/8% Treasury due February 2013
Call features:	Callable on May 15, 2008 at 103.875, then at 102.583, 101.292, declining to par on May 15, 2011 and thereafter
Settlement Date:	May 9, 2003 (T+5)
Ratings:	Moody's: B2
	Standard & Poor's: B+
Rule 144A Cusip:	442488AN2

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