Hovnanian Enterprises Completes Refinancing Transaction
Simpson Thacher represented Hovnanian Enterprises, Inc. (“Hovnanian”), one of the nation’s largest homebuilders, in connection with its recent refinancing transaction.
As part of the refinancing transaction, K. Hovnanian Enterprises, Inc., a wholly-owned subsidiary of Hovnanian (“K. Hovnanian”), completed private placements of senior notes as follows: (i) $450 million aggregate principal amount of its newly issued 8.000% Senior Notes due 2031 and (ii) $450 million aggregate principal amount of its newly issued 8.375% Senior Notes due 2033. The net proceeds will be used to redeem all outstanding amounts of each series of its existing secured notes, consisting of 8.0% Senior Secured 1.125 Lien Notes due 2028 and 11.75% Senior Secured 1.25 Lien Notes due 2029, and to repay in full all outstanding loans under its Senior Secured 1.75 Lien Term Loan Facility due 2028.
In addition, K. Hovnanian and Hovnanian entered into a Fourth Amendment to the credit agreement governing its $125 million senior secured revolving credit facility which, among other things, extended the final scheduled maturity thereof by two years to June 2028.
The Simpson Thacher team included Marisa Stavenas, Patrick Baron, Margaret Selbe, Julie De Keukeleire, Cara Capoccitti, and Sandy Cho (Capital Markets); Bill Sheehan, Alexander Kleinhaus-Resisi, Elizabeth Greene and Khalia Williams (Banking and Credit); Jonathan Pall (Collateral); Jonathan Cantor and Matthew Lester (Tax); Tim Gallagher and Helene Snyder (Real Estate); Courtney Welshimer, Paige Brinton and Matthew Richardson (Intellectual Property); and Jamin Koslowe (Executive Compensation and Employee Benefits).