K. Hovnanian to redeem 11½% notes with 10 5/8% notes offer proceeds

By Toni Weeks

San Diego, April 29 - K. Hovnanian Enterprises, Inc. intends to use the proceeds from its planned offering of $12 million of 10 5/8% senior secured notes due Oct. 15, 2016 along with cash on hand to fully redeem its 11½% senior secured notes due 2013 and its 18% senior secured notes due 2017.

According to a 424B5 filing with the Securities and Exchange Commission, there were about $500,000 of the 11½% notes outstanding and about $11.7 million of the 18% notes outstanding as of Jan. 1.

The 11½% notes may be called for redemption at K. Hovnanian's option beginning May 1 at a redemption price of 101, and the 18% notes may be called for redemption at 102.

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

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