Homebuilder Hovnanian Enterprises Inc.'s subsidiary K. Hovnanian Enterprises Inc. accepted all $170.3 million of the 8.0% senior notes due 2019 tendered in its exchange offer for up to $185 million of the outstanding notes.
Another unit of Hovnanian, K. Hovnanian at Sunrise Trail III LLC, purchased $26 million of the 2019 notes for about $26.5 million in cash.
K. Hovnanian Enterprises also issued about $90.6 million of its 13.5% senior notes due 2026 and about $90.1 million of its 5.0% senior notes due 2040.
In addition, K. Hovnanian drew the agreed sum of $132.5 million of initial term loans from Blackstone Group LP's credit platform GSO Capital Partners and associated funds, to fully redeem its outstanding roughly $132.5 million of 7.0% senior notes due 2019.
GSO Capital Partners and the funds will also provide the company with a $125 million credit facility, part of which will be used to refinance its $75 million term loan in September, and committed to purchase $25 million of additional 10.5% senior secured notes to be issued in January 2019.
