K. Hovnanian to price $797 million notes in two parts on Wednesday

By Paul A. Harris

Portland, Ore., Sept. 18 - K. Hovnanian Enterprises, Inc. will hold an 11 a.m. ET Wednesday investor call for a $797 million offering of notes in two tranches, according to a syndicate source.

The deal is comprised of $550 million of first-lien senior secured notes due October 2020 and $247 million of second-lien senior secured notes due November 2020.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

The Rule 144A for life notes become callable in three years at par plus 75% of the coupon.

The Los Angeles-based homebuilder plans to use the proceeds to refinance its existing first-lien notes due 2016.

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