secwatch / observer
8-K filed September 25, 2023, 7:59 PM ET ticker HOV CIK 0000357294
debt confidence high sentiment positive materiality 0.80

HOVNANIAN ENTERPRISES INC (HOV): debt financing — Hovnanian issues $655M in new secured notes to refinance near-term debt, extends revolver to 2026

HOVNANIAN ENTERPRISES INC

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

HOVNANIAN ENTERPRISES INC incurred senior notes of $430,000,000 aggregate principal amount with Angelo, Gordon & Co., L.P. and Apollo Capital Management, L.P. at 11.75% per annum maturing September 30, 2029.

Instrument
senior notes
Principal
$430,000,000 aggregate principal amount
Counterparty
Angelo, Gordon & Co., L.P. and Apollo Capital Management, L.P.
Rate
11.75% per annum
Maturity
September 30, 2029
Event
incurrence
Exact text from the filing
and sell to the Specified Persons, in a private placement, $225,000,000 aggregate principal amount of 8.0% Senior Secured 1.125 Lien Notes due 2028 (the “New 2028 Notes”) and $430,000,000 aggregate principal amount of 11.75% Senior Secured 1.25 Lien Notes due 2029 (the “New 2029 Notes” and, together with the New 2028 Notes, the “New Secured Notes”). The issuance
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

HOVNANIAN ENTERPRISES INC amended revolving credit of up to $125.0 million with Wilmington Trust, National Association at term SOFR rate (subject to a floor of 3.00%) plus an applicable margin of 4.50% maturing June 30, 2026.

Instrument
revolving credit
Principal
up to $125.0 million
Counterparty
Wilmington Trust, National Association
Rate
term SOFR rate (subject to a floor of 3.00%) plus an applicable margin of 4.50%
Maturity
June 30, 2026
Event
amendment
Exact text from the filing
the Company, the other guarantors party thereto, Wilmington Trust, National Association, as administrative agent, and the lenders party thereto, which provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans (the “Revolving Credit Facility”). Upon effectiveness, the Third Amendment will (i) extend the final scheduled
View on SEC.gov
Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

HOVNANIAN ENTERPRISES INC incurred senior notes of $225,000,000 aggregate principal amount with Angelo, Gordon & Co., L.P. and Apollo Capital Management, L.P. at 8.0% per annum maturing September 30, 2028.

Instrument
senior notes
Principal
$225,000,000 aggregate principal amount
Counterparty
Angelo, Gordon & Co., L.P. and Apollo Capital Management, L.P.
Rate
8.0% per annum
Maturity
September 30, 2028
Event
incurrence
Exact text from the filing
pursuant to which K. Hovnanian will issue and sell to the Specified Persons, in a private placement, $225,000,000 aggregate principal amount of 8.0% Senior Secured 1.125 Lien Notes due 2028 (the "New 2028 Notes")
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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

HOVNANIAN ENTERPRISES INC amended Third Amendment to Credit Agreement (Revolving Credit Facility) with Wilmington Trust, National Association valued at Up to $125.0 million senior secured first lien revolving loans (effective 2023-09-25).

Action
amendment
Agreement
credit facility
Counterparty
Wilmington Trust, National Association
Value
Up to $125.0 million senior secured first lien revolving loans
Effective
2023-09-25
Exact text from the filing
On September 25, 2023, Hovnanian Enterprises, Inc. (the “Company”), K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), a wholly-owned subsidiary of the Company, and the Subsidiary Guarantors (as defined below) entered into the Third Amendment (the “Third Amendment”) to the Credit Agreement, dated as of October 31, 2019 (as amended by the First Amendment to the Credit Agreement, dated as of November 27, 2019, and by the Second Amendment to the Credit Agreement, dated as of August 19, 2022), by and among K. Hovnanian, the Company, the other guarantors party thereto, Wilmington Trust, National Association, as administrative agent, and the lenders party thereto, which provides for up to $125.0 million in aggregate amount of senior secured first lien revolving loans (the “Revolving Credit Facility”).
View on SEC.gov

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HOVNANIAN ENTERPRISES INC filing history →

Source: SEC EDGAR
accession 0001437749-23-026652
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