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RED BANK, N.J. and NEW YORK, Nov. 4, 2013 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE:HOV), a leading national homebuilder, and GSO Capital Partners LP ("GSO"), the credit arm of The Blackstone Group (NYSE:BX), announced today a $150 million increase to their land banking arrangement, which brings the total since July 2012 to $400 million.
During the next twelve months, GSO and Hovnanian anticipate identifying an additional $150 million in land acquisition and development costs. Affiliates of GSO expect to acquire the land parcels, fund land development and option finished lots on a quarterly takedown basis back to Hovnanian.
"GSO has been a great partner and we are excited about the opportunity to expand our land banking arrangement with them," said Ara Hovnanian, Chairman of the Board of Directors, President and Chief Executive Officer of Hovnanian Enterprises, Inc. "The increasing demand for new homes and a diminishing supply of finished lots provides us with an opportunity to further leverage our arrangement with GSO to acquire finished lots on a just-in-time basis. This arrangement increases our liquidity and allows us to control an even larger quantity of land for future communities and deliveries, which will ultimately lead to future revenue growth."
Doug Ostrover, Founding Member and Partner of GSO, said, "We are extremely pleased with the ongoing land banking arrangement. It is a pleasure working with Hovnanian, a leading national homebuilder, and we look forward to a successful business partnership for many years to come."
ABOUT HOVNANIAN ENTERPRISES®, INC.:
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank, New Jersey. The Company is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian
®, Brighton Homes, Parkwood Builders, Town & Country Homes and Oster Homes. As the developer of K. Hovnanian's
® Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes.
Additional information on Hovnanian Enterprises, Inc., including a summary investment profile and the Company's 2012 annual report, can be accessed through the "Investor Relations" section of the Hovnanian Enterprises' website at
http://www.khov.com . To be added to Hovnanian's investor e-mail or fax lists, please send an e-mail to
IR@khov.com or sign up at
ABOUT GSO CAPITAL PARTNERS LP:
GSO Capital Partners LP is the global credit platform of The Blackstone Group L.P. (NYSE:BX). GSO, together with its affiliates, has approximately $63.3 billion of assets currently under management and is one of the largest credit-oriented alternative managers in the world and a major participant in the leveraged finance marketplace. GSO seeks to generate superior risk-adjusted returns in its credit business by investing in a broad array of strategies including mezzanine, distressed investing leveraged loans and other special situation strategies.