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.
The Simpson Thacher team included Marisa Stavenas, Roxane Reardon, Vincent Pagano, Jonathan Lindabury, Frank Kwok, Jonathan Ozner, Jordan Taylor, Daniel Brown and Austen Heim (Capital Markets), Jonathan Pall (Collateral), Marcy Geller and Chang Choi (Tax), Adeeb Fadil (Environmental), Mardi Merjian (Real Estate), Jodie Pimentel (Intellectual Property) and Jeanne Annarumma (Executive Compensation and Employee Benefits).
