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K. Hovnanian Enterprises, Inc. Commences Tender Offers and Related Consent Solicitations for Its Senior Secured and Unsecured Notes.

Article Excerpt
RED BANK, N.J., Sept. 21 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (the "Company") announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. ("K. Hovnanian"), has commenced tender offers to purchase for cash (i) any and all of its properly tendered and accepted outstanding 11 1/2% Senior Secured Notes due 2013 (the "2013 Secured Notes") (the "2013 Secured Notes Tender Offer"), (ii) any and all of its properly tendered and accepted outstanding 18% Senior Secured Notes due 2017 (the "2017 Secured Notes" and, together with the 2013 Secured Notes, the "Secured Notes") (the "2017 Secured Notes Tender Offer") and (iii) the maximum aggregate principal amount of its properly tendered and accepted outstanding 8% Senior Notes due 2012, 6 1/2% Senior Notes due 2014, 6 3/8% Senior Notes due 2014, 6 1/4% Senior Notes due 2015, 7 1/2% Senior Notes due 2016 and 6 1/4% Senior Notes due 2016 (collectively, the "Unsecured Notes," and, together with the Secured Notes, the "Notes") that it can purchase for a maximum aggregate consideration, excluding accrued and unpaid interest, of up to $130.0 million (the "Unsecured Notes Tender Offer" and, together with the 2013 Secured Notes Tender Offer and the 2017 Secured Notes Tender Offer, the "Tender Offers"). In connection with the 2013 Secured Notes Tender Offer and the 2017 Secured Notes Tender Offer, K. Hovnanian is soliciting consents (the "Consent Solicitations") to amend certain provisions of the indentures governing the Secured Notes.

The table set forth below lists each series of Notes that are the subject of the Tender Offers and Consent Solicitations.

Early Title Outstanding Tender Total Acceptance of Principal Consideration Consideration Priority Security Amount(1) (2) (2)(3) Level -------- --------- --- ------ ----- Secured Notes ------------- 11 1/2% Senior Secured Notes due 2013 $600,000,000 $50 $1,060 N/A 18% Senior Secured Notes due 2017 $29,299,000 $50 $1,000 N/A Unsecured Notes --------------- 8% Senior Notes due 2012 $43,500,000 $50 $880 1 6 1/2% Senior Notes due 2014 $144,000,000 $50 $800 2 6...