Genuine Parts to place $50 million five-year notes; Hovnanian to issue $75 million notes

By Lisa Kerner

Charlotte, N.C., July 29 – Genuine Parts Co. agreed to sell $50 million of 2.39% senior notes, series G, due July 2021.

The company will use the proceeds to pay down existing debt, according to a form 10-Q filed with the Securities and Exchange Commission on Friday.

Atlanta-based Genuine Parts distributes automotive replacement parts.

Hovnanian Enterprises, Inc. and wholly owned subsidiary K. Hovnanian Enterprises, Inc. are arranging the placement of $75 million principal amount of 10% senior secured second-lien notes due October 2018, according to a company announcement.

Proceeds will be used to help fund the tender offer by K. Hovnanian for its 8 5/8% senior notes due 2017, which will run until 8:30 a.m. ET on Sept. 7.

The company is also arranging a $75 million senior secured term loan facility due August 2019 with interest at Libor plus 700 basis points to fund the tender offer.

The Red Bank, N.J.-based company designs, constructs, markets and sells townhomes, condominiums and single-family homes.

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