By Sarah Lizee
Olympia, Wash., Oct. 31 – Hovnanian Enterprises, Inc. and subsidiary K. Hovnanian Enterprises, Inc. exchanged or refinanced $221 million of 10% senior secured notes due 2022 and $213.6 million of its 10½% 1.25-lien senior secured notes due 2024 into $350 million of new 7¾% 1.125-lien senior secured notes due 2026 and/or cash and $103.1 million of new 11¼% 1.5-lien senior secured notes due 2026, according to an 8-K filing with the Securities and Exchange Commission.
Specifically, the company completed private exchanges of
• $221,006,000 of its 10% notes and $113,956,000 of its 10½% notes for a portion of the new 1.125-lien notes and/or cash; and
• $99,653,000 of its 10½% notes for $103,141,000 of new 11¼% senior secured 1.5-lien notes due 2026.
K. Hovnanian also issued $282,322,000 of 10½% senior secured 1.25-lien notes due 2026. Proceeds from these notes were used to refinance its 9½% senior secured notes due 2020, 2% senior secured notes due 2021 and 5% senior secured notes due 2021.
Hovnanian is a Matawan, N.J., homebuilder.
| Issuer: | K. Hovnanian Enterprises, Inc.
|
| Issue: | Senior secured notes
|
| Settlement date: | Oct. 31
|
|
|
| 1.125-lien notes
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 7¾%
|
|
|
| 1.5-lien notes
|
| Amount: | $103.1 million
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 11¼%
|
|
|
| 1.25-lien notes
|
| Amount: | $282,322,000
|
| Maturity: | Feb. 15, 2026
|
| Coupon: | 10½%
|
|
|
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