Simpson Thacher represented Hovnanian Enterprises, Inc. (“Hovnanian”), one of the nation’s largest homebuilders, in connection with its recent debt exchange transactions.
As part of the debt exchange transactions, K. Hovnanian Enterprises, Inc., Hovnanian’s wholly owned subsidiary (“K. Hovnanian”), completed private exchanges (the “Exchange”) of (i) approximately $64.0 million aggregate principal amount of its 13.5% Senior Notes due 2026 and approximately $21.5 million in cash for approximately $42.5 million aggregate principal amount of additional Senior Secured 1.75 Lien Term Loans, (ii) approximately $65.2 million aggregate principal amount of its 5.0% Senior Notes due 2040 for approximately $31.4 million aggregate principal amount of additional Senior Secured 1.75 Lien Term Loans and (iii) approximately $39.6 million aggregate principal amount of its 5.0% Senior Unsecured Term Loans maturing in 2027 and approximately $10.0 million in cash for approximately $19.6 million aggregate principal amount of additional Senior Secured 1.75 Lien Term Loans.
In connection with the Exchange, K. Hovnanian entered into the First Amendment to the credit agreement governing its Senior Secured 1.75 Lien Term Loans which, among other things, permits the issuance of the additional $93.5 million of Senior Secured 1.75 Lien Term Loans described above.
The Simpson Thacher team included Marisa Stavenas, Tony Rim, Anna Jarman, Ziang Zhou and Sofia Elkina (Capital Markets); Bill Sheehan, Alexander Kleinhaus-Resisi and Elizabeth Greene (Banking and Credit); Jonathan Pall (Collateral); Courtney Welshimer (Intellectual Property); Jonathan Cantor and Matthew Lester (Tax); Krista McManus, Timothy Gallagher and Helene Snyder (Real Estate); and Jamin Koslowe (Executive Compensation and Employee Benefits).