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 secured notes as follows: (i) $225 million aggregate principal amount of its newly issued 8.0% Senior Secured 1.125 Lien Notes due 2028 and (ii) $430 million aggregate principal amount of its newly issued 11.75% Senior Secured 1.25 Lien Notes due 2029. The net proceeds will be used to redeem all outstanding amounts of each series of its existing secured notes, consisting of 7.75% Senior Secured 1.125 Lien Notes due 2026, 10.5% Senior Secured 1.25 Lien Notes due 2026, 11.25% Senior Secured 1.5 Lien Notes due 2026 and 10.0% Senior Secured 1.75 Lien Notes due 2025.
In addition, K. Hovnanian and Hovnanian entered into a Third 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 2026.
The Simpson Thacher team included Marisa Stavenas, Tony Rim, Pia Figuerola, Alex Michael and Sofia Elkina (Capital Markets); Bill Sheehan, Alexander Kleinhaus-Resisi, Tenzin Dolkar and Ashley Jaramillo (Banking and Credit); Soogy Lee and Jonathan Pall (Collateral); Jonathan Cantor and Tova Pfeffer (Tax); Dennis Loiacono and Helene Snyder (Real Estate); Alysha Sekhon (Intellectual Property); and Jennie Getsin (Blue Sky).