Simpson Thacher represented Hovnanian Enterprises, Inc. (NYSE: HOV), one of the nation’s largest homebuilders and a long-standing client of the Firm, in connection with (1) the private placement offering by K. Hovnanian Enterprises, Inc., its wholly owned subsidiary (“K. Hovnanian”), of $75 million 10% Senior Secured Second Lien Notes due 2018, (2) the exchange by K. Hovnanian of $75 million 9.125% Senior Secured Second Lien Notes due 2020 for $75 million 9.5% Senior Secured First Lien Notes due 2020 and (3) the establishment of a new $75 million First Lien Term Loan Credit Facility. The transactions resulted in aggregate gross proceeds of approximately $146 million. K. Hovnanian used a portion of the proceeds to fund the full redemption of its 8.625% Senior Notes due 2017 and the satisfaction and discharge of the related indenture.
The Simpson Thacher team included Marisa Stavenas, Michael Nathan, Katerina Kousoula, Hui Lin, Matthew Levy, Hana Nah, Lisa Zhang, Patrick Vergara, Sam Egendorf and Jessie Chen (Capital Markets); Bill Sheehan, Soogy Lee, Christian Fischer, Homin Lee, Jacqueline Yuan and Ashley Yoon (Banking and Credit); Janet Nadile and Jonathan Pall (Collateral); Marcy Geller, Jonathan Cantor and Sarah Katz (Tax); Adeeb Fadil (Environmental); Krista McManus and Dennis Loiacono (Real Estate); Marcela Robledo and Monica Chan (Intellectual Property); and Jamin Koslowe (Executive Compensation and Employee Benefits).