Key Developments For Hovnanian Enterprises, Inc.
Hovnanian Enterprises, Inc. (HOVNP.O) (Consolidated Issue listed on NASDAQ Global Market)
Hovnanian Enterprises, Inc. and GoldenTree InSite Partners Announce Formation Of Homebuilding Joint Venture
Hovnanian Enterprises, Inc. and GoldenTree InSite Partners announced that they have entered into a joint venture agreement to acquire a portfolio of homebuilding projects. The venture intends to design, sell, and deliver homes on the properties, which are located across 11 communities in the greater Chicago market and Palm Beach County, Florida. Since this venture is purchasing lots that were previously owned by an unconsolidated Hovnanian joint venture, there will be no change in the reported number of lots owned by unconsolidated joint ventures in Hovnanian's SEC filings. Hovnanian invested 20% of the equity capital in the new venture, with GoldenTree InSite providing the balance. Hovnanian will manage the day-to-day operations of the venture. If certain financial targets are met, Hovnanian will receive a promoted share of the cash returns from the venture. The venture was capitalized 100% with equity, but if in the future financing becomes available, the venture may obtain a modest amount of non-recourse debt on the properties. Additional details related to the joint venture are not being disclosed.
Hovnanian Enterprises, Inc. Appoints Ara K. Hovnanian As Chairman
Hovnanian Enterprises, Inc. announced that its Board of Directors has appointed Ara K. Hovnanian as Chairman of its Board of Directors, in addition to his positions as President and Chief Executive Officer of the Company. Mr. Ara K. Hovnanian will succeed Mr. Kevork S. Hovnanian, the founder of the Company, who served as Chairman of the Board of Directors up until his death in September 2009.
Hovnanian Enterprises, Inc. Announces Closing of $785 Million Senior Secured Notes Offering
Hovnanian Enterprises, Inc. announced the closing of the private placement offering of $785.0 million of 10(5)/(8)% Senior Secured Notes due 2016 issued by K. Hovnanian Enterprises, Inc. (K. Hovnanian), a wholly owned subsidiary of the Company, and guaranteed by the Company and substantially all of its subsidiaries. The new secured notes and the guarantees thereof will be secured on a first priority lien basis by substantially all the assets owned by the Company and the guarantors, subject to permitted liens and certain exceptions. The proceeds of the new secured notes offering were used, together with cash on hand, to fund the tender offers. In connection with the new secured notes offering, K. Hovnanian terminated its revolving credit facility and entered into certain letter of credit facilities.
Hovnanian Enterprises, Inc. Announces Pricing Of Senior Secured First-Lien Notes
Hovnanian Enterprises, Inc. announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. (K. Hovnanian), priced $785 million aggregate principal amount of 10.625% senior secured notes due October 15, 2016 (the Notes) in a private placement. K. Hovnanian intends to use the net proceeds from the offering of the Notes together with cash on hand to fund its previously announced tender offers and consent solicitations (the Tender Offers) for its outstanding second and third lien senior secured notes and certain series of senior unsecured notes commenced pursuant to the Offer to Purchase and Consent Solicitation Statement dated September 21, 2009, as amended, and to pay related fees and expenses. In conjunction with the closing of the Notes offering, K. Hovnanian expects to consummate the Tender Offers and to terminate its existing revolving credit facility and enter into certain letter of credit agreements.
Hovnanian Enterprises, Inc. Announces New Senior Secured Notes Offering
Hovnanian Enterprises, Inc. announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. (K. Hovnanian), plans to issue an aggregate principal amount of up to $775 million of senior secured notes due 2016 (the Notes) in a private placement. In conjunction with the closing of the Notes offering, K. Hovnanian expects to consummate its previously announced tender offers and consent solicitations (Tender Offers) for its outstanding senior secured notes and certain series of senior unsecured notes and terminate its existing revolving credit facility and enter into certain letter of credit agreements. K. Hovnanian intends to use the net proceeds from the offering of the Notes together with cash on hand to fund the Tender Offers commenced pursuant to the Offer to Purchase and Consent Solicitation Statement dated September 21, 2009, as amended, and to pay related fees and expenses. Any excess proceeds will be used for additional debt repurchases from time to time and/or for general corporate purposes.
