--- schema_version: "secwatch.filing_event.v1" accession: "0001437749-23-026652" form_type: "8-K" ticker: "HOV" cik: "0000357294" company_name: "HOVNANIAN ENTERPRISES INC" filed_at: "2023-09-25T23:59:59+00:00" generated_at: "2026-06-10T09:22:10.852085+00:00" event_type: "debt" sentiment: "positive" materiality_score: 0.8 calibrated_materiality_score: 0.8 confidence: "high" source: SEC EDGAR --- # Hovnanian issues $655M in new secured notes to refinance near-term debt, extends revolver to 2026 ## Summary - Issues $225M 8.0% notes due 2028 and $430M 11.75% notes due 2029 in private placement. - Proceeds used to redeem all existing secured notes maturing 2025 and 2026 (7.75%, 10.5%, 11.25%, 10.0%). - Revolving credit facility amended to June 30, 2026; interest rate floor raised to 3%. - CEO states transaction reduces risk, extends maturities with minimal annual interest increase. - Closing expected October 5, 2023, subject to customary conditions. ## SEC filing metadata - accession: 0001437749-23-026652 - form_type: 8-K - ticker: HOV - cik: 0000357294 - company_name: HOVNANIAN ENTERPRISES INC - filed_at: 2023-09-25T23:59:59+00:00 - event_type: debt - sentiment: positive - materiality_score: 0.8 - calibrated_materiality_score: 0.8 - confidence: high - sec_items: 1.01, 8.01, 2.03, 7.01, 9.01 - EDGAR index: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/0001437749-23-026652-index.htm - EDGAR primary document: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/hov20230920_8k.htm ## Machine-readable alternates - HTML: https://secwatch.observer/filing/0001437749-23-026652 - JSON: https://secwatch.observer/filing/0001437749-23-026652.json - Plain text: https://secwatch.observer/filing/0001437749-23-026652.txt ## Key facts - Debt Financings 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 source text: 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 evidence_url: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/0001437749-23-026652-index.htm - Debt Financings 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 source text: 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 evidence_url: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/0001437749-23-026652-index.htm - Debt Financings 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 source text: 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") evidence_url: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/0001437749-23-026652-index.htm - Material Agreements 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 source text: 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”). evidence_url: https://www.sec.gov/Archives/edgar/data/357294/000143774923026652/0001437749-23-026652-index.htm This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.