New Issue-K. Hovnanian sells $785 mln in 7-yr sr sec notes

Oct 5 (Reuters) - K. Hovnanian Enterprises Inc, a unit of
Hovnanian Enterprises Inc (HOV.N), on Monday sold $785 million
of first lien senior secured notes in the 144a private
placement market, said IFR, a Thomson Reuters service.

The size of the deal was increased from an originally
planned $775 million.

Citigroup and Credit Suisse were the joint bookrunning
managers for the sale.
BORROWER: K. HOVNANIAN ENTERPRISES INC
AMT $785 MLN COUPON 10.625 PCT MATURITY 10/15/2016
TYPE SR SEC NOTES ISS PRICE 98.208 FIRST PAY 4/15/2010
MOODY'S B1 YIELD 11.0 PCT SETTLEMENT 10/20/2009
S&P N/A SPREAD 821 BPS PAY FREQ SEMI-ANNUAL
FITCH N/A MORE THAN TREAS NON-CALLABLE 3 YEARS