Simpson Thacher represented Hovnanian Enterprises, Inc. (“Hovnanian”), one of the nation’s largest homebuilders and a long-standing client of the Firm, in connection with its recent debt exchange transactions.
As part of the debt exchange transactions, K. Hovnanian Enterprises, Inc., Hovnanian’s wholly owned subsidiary (“K. Hovnanian”), completed exchange offers of approximately $158.5 million aggregate principal amount of its newly issued 10% Senior Secured 1.75 Lien Notes due 2025 for approximately $23.2 million aggregate principal amount of its 10% Senior Secured Notes due 2022 and approximately $141.7 million aggregate principal amount of its 10.5% Senior Secured Notes due 2024.
In addition, K. Hovnanian entered into a new credit agreement providing for approximately $81.5 million of Senior Secured 1.75 Lien Term Loans due 2028 that were borrowed in exchange for approximately $163 million of K. Hovnanian’s existing Senior Unsecured Term Loans due 2027.
The Simpson Thacher team included Marisa Stavenas, Jon Ozner, Ben Massey and Seth Lowinger (Capital Markets); Bill Sheehan, Harini Mekala and Kal Venkatraj (Banking and Credit); Soogy Lee, Jonathan Pall and Janet Nadile (Restructuring); Marcy Geller, Jonathan Cantor and Gal Shemer (Tax); Krista McManus and Dennis Loiacono (Real Estate); Marcela Robledo (Intellectual Property); and Jamin Koslowe (Executive Compensation and Employee Benefits).