Hovnanian Raising Scratch

It plans to sell $250 million worth of notes.
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Hovnanian Enterprises

(HOV) - Get Report

said Monday that it agreed to sell $250 million aggregate principal amount of 8-5/8% senior notes.

The notes, which are due 2017, will be issued by K. Hovnanian Enterprises and will be guaranteed by Hovnanian Enterprises and most of the company's current and future restricted subsidiaries. The Red Bank, N.J.-based company will use the net proceeds from the notes to repay outstanding indebtedness.

The offering of the notes is expected to close on June 12. J.P. Morgan, Banc of America Securities, Citigroup and Credit Suisse are acting as joint book-running managers for the offering, the company said.

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