Hovnanian draws entire $125 million under first-lien revolver

By Sarah Lizee

Olympia, Wash., March 25 – Hovnanian Enterprises, Inc. drew the full $125 million under its senior secured first-lien revolving credit facility, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The draw was made given the uncertain environment resulting from the Covid-19 pandemic and as a precautionary measure to maximize financial flexibility and increase its current cash position, the company said.

The proceeds may be used for general corporate purposes.

Availability under the revolver will terminate on Dec. 28, 2022 and borrowings bear interest at a rate per annum equal to 7.75%.

Hovnanian is a Matawan, N.J., homebuilder.

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