Hovnanian 8 5/8% noteholders give consents to amend, issue more notes

By Susanna Moon

Chicago, April 21 - Hovnanian Enterprises, Inc. said its wholly owned subsidiary K. Hovnanian Enterprises, Inc. received the needed consents to amend its 8 5/8% senior notes due 2017 under a solicitation that began April 12.

The company executed a supplemental indenture amending the notes, which will become operative on the payment date, according to a company press release.

As previously reported, the company sought consents to modify the notes to allow K. Hovnanian to issue more first-lien secured notes for the purpose of redeeming all of its $500,000 of 11½% senior secured notes due 2013 and its $11.7 million of 18% senior secured notes due 2017.

Hovnanian needed approval from holders of at least a majority of the notes by the solicitation deadline at 5 p.m. ET on April 21.

Those who delivered consents will receive a payment of $1.25 per $1,000 principal amount of notes.

The solicitation is subject to the execution of a supplemental indenture as well as a financing condition.

Credit Suisse Securities (USA) LLC is the solicitation agent (212 538-2147 or 800 820-1653). Bondholder Communications Group is the information and tabulation agent (888 385-2663).

Deutsche Bank National Trust Co. is the trustee.

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

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