Davis Polk advised Credit Suisse Securities (USA) LLC as underwriter in connection with an SEC-registered, add-on offering by K. Hovnanian Enterprises, Inc. of $12 million aggregate principal amount of 10⅝% senior secured notes due 2016.

 

The notes are a reopening of an offering of $785 million of such notes issued in 2009. The notes are guaranteed by Hovnanian Enterprises, Inc. and substantially all of its subsidiaries and are secured on a first-priority lien basis by substantially all the assets owned by K. Hovnanian Enterprises and the guarantors. The proceeds of the offering together with cash on hand will be used to fund the redemption of K. Hovnanian Enterprises’ outstanding 11½% senior secured notes due 2013 and 18% senior secured notes due 2017. In connection with the offering, K. Hovnanian Enterprises solicited consents to amend certain provisions of the indenture governing its 8⅝% senior notes due 2017. Davis Polk advised Credit Suisse Securities (USA) LLC as solicitation agent for the consent solicitation. 

K. Hovnanian Enterprises, Inc. is a subsidiary of Hovnanian Enterprises, Inc., which is headquartered in Red Bank, New Jersey, and is one of the nation’s largest builders of residential homes. 

The Davis Polk capital markets team included partner Michael Kaplan, counsel Jeff Ramsay and associate Scott Lunin. The credit team included partner Jason Kyrwood and associate J.W. Perry. Partner Lucy W. Farr and associates M. Ryan LaRosa (of the Menlo Park office) and Rachel Lerner provided tax advice. The environmental team included counsel Loyti Cheng and associates Adam Riedel and Connor Kuratek (not yet admitted). Counsel Susan D. Kennedy provided real estate advice. Natalie Chan, Mariee Pilkington and Rana S. Ramjas were the legal assistants on the transaction. Except as noted above, all members of the Davis Polk team are based in the New York office.