Hovnanian Enterprises, Inc. Announces Proposed Public Offerings Of Class A Common Stock, Tangible Equity Units And Senior Unsecured Notes
RED BANK, N.J., Jan. 31, 2011 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE:HOV) (the "Company") announced today the commencement of registered underwritten public offerings of Class A Common Stock, tangible equity units and senior unsecured notes. The offerings are anticipated to consist of the issuance of $50 million of the Company's Class A Common Stock, 3,000,000 tangible equity units, each with a stated amount of $25 and comprised of a prepaid stock purchase contract issued by the Company and a senior subordinated amortizing note due 2014 issued by K. Hovnanian Enterprises, Inc. ("K. Hovnanian"), the Company's wholly-owned subsidiary, and $150 million aggregate principal amount of senior unsecured notes due 2015 issued by K. Hovnanian (the "Notes"). In addition, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Class A Common Stock and tangible equity units sold to cover over-allotments. None of the offerings is contingent upon completion of any of the other offerings and each of the offerings is being conducted as a separate public offering.
J.P. Morgan, Credit Suisse, BofA Merrill Lynch and Citi are serving as the joint book-running managers for the Class A Common Stock offering and Wells Fargo Securities is serving as co-manager. Credit Suisse, Citi and J.P. Morgan are serving as the joint book-running managers for the tangible equity units offering and BofA Merrill Lynch, Deutsche Bank Securities and Wells Fargo Securities are serving as co-managers. Credit Suisse, Citi, Deutsche Bank Securities and J.P. Morgan are serving as the joint book-running managers for the Notes offering.
The Company and K. Hovnanian intend to use the net proceeds of the offerings to fund the purchase of K. Hovnanian's 8% Senior Notes due 2012, 8⅞% Senior Subordinated Notes due 2012 and 7¾% Senior Subordinated Notes due 2013 pursuant to tender offers for such securities, which are being commenced today by a separate press release, and by redemption to the extent such notes are not purchased in the tender offers. The remainder of the net proceeds will be used for general corporate purposes.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV