RED BANK, N.J., June 5 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. today announced that it has entered into an agreement to sell $250 million aggregate principal amount of 8-5/8% Senior Notes due 2017 (the "Notes"). The Notes will be issued by K. Hovnanian Enterprises, Inc. and will be guaranteed by Hovnanian Enterprises, Inc. and most of the Company's current and future restricted subsidiaries. The net proceeds from the issuance of the Notes will be used to repay outstanding indebtedness. The offering of the Notes is expected to close on June 12, 2006.
JPMorgan, Banc of America Securities LLC, Citigroup and Credit Suisse are acting as joint book-running managers for the offering with UBS Investment Bank, Wachovia Securities, PNC Capital Markets LLC, The Royal Bank of Scotland, BNP Paribas, KeyBanc Capital Markets, Suntrust, Robinson Humphrey, and Comerica Securities acting as co-managers.
Copies of the prospectus relating to the offering may be obtained from:
* JPMorgan Securities Inc., 270 Park Avenue, 8th Floor, New York, New York
10017, Attention: Syndicate Desk, 800-245-8812;
* Banc of America Securities LLC, 9 West 57th Street, 6th Floor, New York,
New York 10019, 800-294-1322;
* Citigroup Corporate and Investment Banking, Prospectus Department, 140
58th Street, 8th Floor, Brooklyn, New York 11220, 718-765-6732; or
* Credit Suisse, Prospectus Department, One Madison Avenue, New York,
New York 10010, 212-325-2580.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Note: All statements in this Press Release that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and business conditions, (2) weather conditions, (3) changes in market conditions, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the homebuilding process and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in and price fluctuations of raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) geopolitical risks, terrorist acts and other acts of war and (13) other factors described in detail in the Company's Form 10-K for the year ended October 31, 2005.
