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Published on 12/28/2017 in the Prospect News High Yield Daily and Prospect News Liability Management Daily.

Hovnanian seeks to amend 10% notes due 2022, 10˝% notes due 2024

By Marisa Wong

Morgantown, W.Va., Dec. 28 – Hovnanian Enterprises, Inc. said its wholly owned subsidiary, K. Hovnanian Enterprises, Inc., has begun a solicitation of consents to amend its $440 million of outstanding 10% senior secured notes due 2022 and $400 million of outstanding 10˝% senior secured notes due 2024.

The consent solicitation for each series of notes is a separate consent solicitation and is not conditioned on its other consent solicitation.

Each consent solicitation is scheduled to expire at 5 p.m. ET on Jan. 12.

Holders who deliver consents will be eligible to receive a consent consideration of $2.50 per $1,000 principal amount of notes.

The purpose of the solicitations is to obtain noteholder approval of proposed amendments to the note indentures to eliminate restrictions on the company’s ability to repurchase or redeem its 7% senior notes due 2019 and 8% senior notes due 2019 and restrictions on refinancing or replacement debt.

As separately announced, the company launched an offer on Thursday to exchange its 8% notes due 2019 for new notes due 2026 and 2040. The company also announced it obtained committed term loans to refinance its 7% notes due 2019.

Each consent solicitation is conditioned on the receipt of consents from holders of a majority in principal amount of the outstanding notes of the applicable series.

Consents may be revoked prior to the date the applicable supplemental indenture giving effect to the proposed amendments is executed.

Global Bondholder Services Corp. (212 430-3774 or 866 470-4300) is the information and tabulation agent for the consent solicitations.

Hovnanian Enterprises is a homebuilder based in Red Bank, N.J.


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