Hovnanian buys back $368 million of notes for $120 million

By Susanna Moon

Chicago, March 10 - Hovnanian Enterprises, Inc. said it repurchased $53 million face value of unsecured senior and senior subordinated notes for $15 million in cash during the first quarter ended Jan. 31.

Since the end of the first quarter, the company purchased $240 million face value of unsecured senior notes and $75 million face value of unsecured senior subordinated notes for $105 million in cash, resulting in a $210 million gain and a corresponding increase in stockholders' equity.

"While we continue to explore debt exchanges and purchases, we remain committed to the preservation of our cash balances," Ara K. Hovnanian, president and chief executive officer, said in a press release.

Hovnanian is a homebuilder based in Red Bank, N.J.

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