Davis Polk advised the joint book-running managers and initial purchasers on a Rule 144A and Regulation S offering by K. Hovnanian Enterprises, Inc. of $440 million aggregate principal amount of 10.000% senior secured notes due 2022 and $400 million aggregate principal amount of 10.500% senior secured notes due 2024. The notes are guaranteed on a senior secured basis by Hovnanian Enterprises, Inc. and substantially all of its subsidiaries. 

A portion of the proceeds of the offering are being used to fund tender offers by K. Hovnanian Enterprises, Inc. for any and all of its outstanding 10.000% senior secured second-lien notes due 2018, 7.250% senior secured first-lien notes due 2020 and 9.125% senior secured second-lien notes due 2020. Davis Polk advised the dealer managers and solicitation agents in connection with the tender offers for the first-lien and second-lien notes and solicitation of consents to certain amendments to the indentures governing the first-lien and second-lien notes. The remaining proceeds of the offering will be used to redeem the first-lien and second-lien notes that were not purchased in the tender offer.

K. Hovnanian Enterprises, Inc. is a subsidiary of Hovnanian Enterprises, Inc., which is headquartered in Red Bank, New Jersey, and is one of the nation’s largest builders of residential homes. 

The Davis Polk capital markets team included partner Michael Kaplan, counsel Jeffrey S. Ramsay and associates Dan Gibbons, Bria J.M. Cunningham and Ian K. Dummett. The finance team included partner Kenneth J. Steinberg and associates Vivian Y. Wong and Sang Hun Lee. The tax team included partner Lucy W. Farr and associate Ariel David Siman. All members of the Davis Polk team are based in the New York office.

Copy link to share post