Hovnanian announces $900 million senior notes offering

MATAWAN, N.J. - Homebuilder Hovnanian Enterprises, Inc. (NYSE:HOV), currently valued at $915 million and trading at an attractive P/E ratio of 7.5, announced Thursday that its subsidiary K. Hovnanian Enterprises has priced an offering of $900 million in senior notes through a private placement.

The offering consists of $450 million in 8.000% Senior Notes due 2031 and $450 million in 8.375% Senior Notes due 2033. The notes will be guaranteed by Hovnanian Enterprises and substantially all of its subsidiaries, with the transaction expected to close around September 25, 2025. According to InvestingPro data, the company maintains a healthy current ratio of 3.78, indicating strong ability to meet its short-term obligations.

K. Hovnanian plans to use the proceeds to redeem its outstanding 8.0% Senior Secured 1.125 Lien Notes due 2028 at 104.000% of principal amount and its 11.75% Senior Secured 1.25 Lien Notes due 2029 at 100.000% of principal amount plus make-whole premium. The company will also repay all outstanding loans under its Senior Secured 1.75 Lien Term Loan Facility due 2028 at par.

The notes are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to certain persons in offshore transactions under Regulation S.

Hovnanian Enterprises, founded in 1959, operates in 13 states across the United States through its K. Hovnanian Homes brand. The company also develops active lifestyle communities through its Four Seasons communities. InvestingPro analysis shows the stock is currently undervalued, with 12 additional exclusive insights available to subscribers. For detailed analysis and valuation metrics, check out the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities.

This article is based on a press release statement from Hovnanian Enterprises.

In other recent news, Hovnanian Enterprises reported its third-quarter 2025 earnings, which fell short of forecasts. The company posted an earnings per share (EPS) of $1.99, significantly below the expected $3.51, representing a 43.3% negative surprise. Revenue was reported at $800.58 million, slightly under the anticipated $806.2 million. Additionally, K. Hovnanian Enterprises, a subsidiary of Hovnanian Enterprises, announced plans to offer $900 million in senior notes through a private placement. This offering includes $450 million in senior notes due 2031 and another $450 million due 2033. The notes will be guaranteed by Hovnanian Enterprises and most of its subsidiaries. These recent developments are crucial for investors monitoring the company’s financial health and strategic moves.

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