Hovnanian gives early tender results for 8%, 8 7/8%, 7¾% senior notes

By Marisa Wong

Madison, Wis., Feb. 11 - Hovnanian Enterprises, Inc. announced the early results of the previously announced cash tender offers by its wholly owned subsidiary K. Hovnanian Enterprises, Inc. for any and all of K. Hovnanian's $35,528,000 of outstanding 8% senior notes due 2012, $66,639,000 of outstanding 8 7/8% senior subordinated notes due 2012 and $53,531,000 of outstanding 7¾% senior subordinated notes due 2013.

As of 5 p.m. ET on Feb. 11, the early tender date, the company received tenders for $24,576,000 of the 8% notes, $44,092,000 of the 8 7/8% notes and $29,232,000 of the 7¾% notes.

For each $1,000 principal amount, the company will pay $1,003.30 for the 8% notes, $1,003.75 for the 8 7/8% notes and $1,016.00 for the 7¾% notes, all including a $30.00 early tender premium to those who tendered by the early tender date. The early settlement date is Feb. 14.

Holders who tender after the early tender date will receive the tender offer consideration, which equals the total consideration less the early tender premium.

Holders will also receive accrued interest.

The offers, which began on Jan. 31, will end at midnight ET on Feb. 28. They are subject to sufficient financing.

Credit Suisse Securities (USA) LLC is the dealer manager (212 538-2147 or 800 820-1653). Bondholder Communications Group is the information and tender agent (888 385-2663 or www.bondcom.com/khov).

Hovnanian is a Red Bank, N.J., homebuilder.

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