Simpson Thacher represented Hovnanian Enterprises, Inc. (NYSE: HOV) (the “Company”), one of the nation’s largest homebuilders and a long-standing client of the Firm, in connection with the private placement offering of $577 million 7.25% Senior Secured First Lien Notes due 2020 and $220 million 9.125% Senior Secured Second Lien Notes due 2020 and the registered offering of $100 million aggregate stated amount of 6.00% Exchangeable Note Units (equivalent to 100,000 Units) (which amount includes the full exercise of the over-allotment option granted to the underwriters), with each Unit composed of a senior exchangeable note and a senior amortizing note. The offerings resulted in aggregate gross proceeds of approximately $900 million. Hovnanian used the proceeds of the offerings to fund the cash tender offer and consent solicitation (the “Tender Offer”) for any and all of its 10?% Senior Secured Notes due 2016 (the “Existing Secured Notes”) and to redeem any of its Senior Notes not tendered pursuant to the Tender Offer.
Tags: Simpson Thacher & Bartlett LLP | New York
