A Hovnanian Enterprises Inc. unit's private exchange offers of its outstanding 10.000% senior secured notes due 2022 and 10.500% senior secured notes due 2024 for up to $240.0 million of its newly issued 10.000% 1.75 lien notes due 2025 expired at 11:59 p.m. ET on Dec. 5.
K. Hovnanian Enterprises Inc. will accept for exchange, without proration, notes that were properly tendered as of the expiration date, amounting to about $23.2 million, or 10.6%, of the 2022 notes and $141.7 million, or 67.0%, of the 2024 notes. In exchange, the homebuilder will issue approximately $158.5 million of the 2025 notes.
Settlement is expected to be on or shortly after Dec. 10.
K. Hovnanian expects to exchange certain of its outstanding unsecured debt for up to $81.5 million of debt secured on a pari passu basis with the 2025 notes.
Global Bondholder Services Corp. is the exchange and information agent for the offers.