UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 22, 2014
HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 1-8551 | 22-1851059 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
110 West Front Street
P.O. Box 500
Red Bank, New Jersey 07701
(Address of Principal Executive Offices) (Zip Code)
(732) 747-7800
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 1.01 | Entry into a Material Definitive Agreement. |
On September 23, 2014, Hovnanian Enterprises, Inc. (the “Company”) announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), has received the requisite consents to adopt the proposed amendments (the “Proposed Amendments”) to the indenture governing K. Hovnanian’s 9.125% Senior Secured Second Lien Notes due 2020 (the “Second Lien Notes”) in connection with K. Hovnanian’s previously announced solicitation of consents with respect to K. Hovnanian’s 7.25% Senior Secured First Lien Notes due 2020 (the “First Lien Notes”) and Second Lien Notes (the “Consent Solicitations”), which expired with respect to the Second Lien Notes at 5:00 p.m., New York City time, on September 22, 2014. The Consent Solicitations are made in accordance with the terms and subject to the conditions stated in a Consent Solicitation Statement, dated September 11, 2014, and in a related Consent Form, to holders of record as of 5:00 p.m., New York City time, on September 10, 2014.
Following the receipt of the requisite consents with respect to the Second Lien Notes, on September 22, 2014, K. Hovnanian, the Company, as guarantor, the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (in both such capacities, the “Trustee”) executed the Ninth Supplemental Indenture, dated as of September 22, 2014 (the “Supplemental Indenture”), to the indenture governing the Second Lien Notes, dated as of October 2, 2012 (as then supplemented, amended or otherwise modified, the “Indenture”), among K. Hovnanian, the Company, as guarantor, the other guarantors party thereto and the Trustee, giving effect to the Proposed Amendments. Consents under the Consent Solicitation with respect to the Second Lien Notes may no longer be revoked. The Proposed Amendments modify the definition of “Permitted Indebtedness” in the Indenture to permit K. Hovnanian, the Company and its Restricted Subsidiaries (as defined in the Indenture) to incur additional indebtedness in an amount not to exceed $300.0 million (and refinancings thereof). The foregoing description of the Supplemental Indenture is not complete and is qualified in its entirety by reference to the Supplemental Indenture, a copy of which is attached as Exhibit 4.1 to this Current Report on Form 8-K (“Current Report”) and is incorporated herein by reference.
| Item 3.03. | Material Modification to Rights of Security Holders. |
The information set forth above under Item 1.01 with respect to the Supplemental Indenture is hereby incorporated by reference into this Item 3.03.
| Item 7.01. | Regulation FD Disclosure. |
Also on September 23, 2014, the Company announced that K. Hovnanian has extended the expiration date of the Consent Solicitation with respect to the First Lien Notes to 5:00 p.m., New York City time, on September 25, 2014.
A copy of the press release announcing the expiration of the Consent Solicitation with respect to the Second Lien Notes and the receipt of the related requisite consents and the extension of the expiration date of the Consent Solicitation with respect to the First Lien Notes is attached hereto as Exhibit 99.1 and is incorporated herein solely for purposes of this Item 7.01.
The information in Item 7.01 of this Current Report, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
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| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit 4.1 | Ninth Supplemental Indenture, dated as of September 22, 2014, relating to the 9.125% Senior Secured Second Lien Notes due 2020, among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc., the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. | |
| Exhibit 99.1 | Press Release, issued September 23, 2014. | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOVNANIAN ENTERPRISES, INC. | ||
| (Registrant) | ||
| By: | /s/ Michael Discafani | |
| Name: | Michael Discafani | |
| Title: | Vice President, Corporate Counsel and Secretary | |
Date: September 23, 2014
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INDEX TO EXHIBITS
| Exhibit |
Exhibit | |
| Exhibit 4.1 | Ninth Supplemental Indenture, dated as of September 22, 2014, relating to the 9.125% Senior Secured Second Lien Notes due 2020, among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc., the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. | |
| Exhibit 99.1 | Press Release, issued September 23, 2014. | |
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Exhibit 4.1
NINTH SUPPLEMENTAL INDENTURE
dated as of September 22, 2014
among
K. HOVNANIAN ENTERPRISES, INC.
HOVNANIAN ENTERPRISES, INC.
The Other Guarantors Party Hereto
and
WILMINGTON TRUST, NATIONAL ASSOCIATION
as Trustee and Collateral Agent
9.125% Senior Secured Second Lien Notes due 2020
1
THIS NINTH SUPPLEMENTAL INDENTURE, dated as of September 22, 2014 (this “Ninth Supplemental Indenture”), to the Indenture dated as of October 2, 2012, among K. Hovnanian Enterprises, Inc., a California corporation (the “Issuer”), Hovnanian Enterprises, Inc. (the “Company”), the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (in both such capacities, the “Trustee”) (as amended and supplemented to the date hereof, the “Indenture”).
W I T N E S S E T H:
WHEREAS, the Issuer’s 9.125% Senior Secured Second Lien Notes due 2020 (the “Notes”) were issued under the Indenture and are guaranteed by the Company, K. HOV IP II, Inc., a California corporation (“K. HOV IP”), and each of the entities listed on Schedule I hereto (together with K. HOV IP, the “Guarantors”);
WHEREAS, the Issuer has solicited consents (each a “Consent” and collectively the “Consents”) of Holders to the amendment of the Indenture and to the Notes set forth in Section 2 of this Ninth Supplemental Indenture (the “Amendment”) upon the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated September 11, 2014 (the “Statement”), and in the related Consent Form (the “Consent Form” and, together with the Statement, the “Consent Documents”);
WHEREAS, Section 9.02 of the Indenture provides that the Issuer, the Company, the Guarantors and the Trustee may amend or supplement the Indenture, the Notes and the Guarantees with the written consent of the Holders of a majority in principal amount of the outstanding Notes;
WHEREAS, the Issuer has received and delivered to the Trustee written evidence of the Consents from Holders of more than a majority of the outstanding aggregate principal amount of the Notes to effect the Amendment;
WHEREAS, the Issuer, the Company and the Guarantors have been authorized by a resolution of their respective Board of Directors, or the Board of Directors of their ultimate sole or managing member, as the case may be, to enter into this Ninth Supplemental Indenture; and
WHEREAS, all other acts and proceedings required by law, by the Indenture and by the organizational documents of the Issuer, the Company and the Guarantors to make this Ninth Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in accordance with its terms, have been duly done and performed;
NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuer, the Company, the Guarantors and the Trustee hereby agree as follows:
SECTION 1. Definitions.
Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture.
2
SECTION 2. Modification of Certain Definitions in Article 1.
(a) The definition of “Permitted Indebtedness” in Article 1 of the Indenture is amended by (i) deleting the “and” at the end of clause (l), (ii) deleting the “.” at the end of clause (m) and replacing it with “; and” and (iii) adding, after the end of clause (m) a new clause (n) as follows:
“(n) Indebtedness in an aggregate principal amount outstanding at any one time not to exceed $300.0 million plus, in connection with the incurrence of any Refinancing Indebtedness in respect of Indebtedness incurred under this clause (n), the aggregate principal amount of additional Indebtedness incurred to fund accrued interest, premiums (including tender premiums) and fees and expenses incurred in connection with the refinancing of such Indebtedness.”
SECTION 3. This Ninth Supplemental Indenture will become effective immediately upon its execution and delivery but the Amendment set forth in Section 2 of this Ninth Supplemental Indenture will not become operative unless and until the Consent Consideration (as defined in the Consent Documents) is paid by the Issuer in accordance with the terms and conditions of the Consent Documents.
SECTION 4. This Ninth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.
SECTION 5. This Ninth Supplemental Indenture may be signed in various counterparts, which together will constitute one and the same instrument.
SECTION 6. This Ninth Supplemental Indenture is an amendment supplemental to the Indenture, and the Indenture and this Ninth Supplemental Indenture will henceforth be read together.
SECTION 7. Except as expressly provided herein, all of the terms, provisions and conditions of the Indenture and the Notes shall remain in full force and effect.
SECTION 8. If any provision of this Ninth Supplemental Indenture limits, qualifies or conflicts with another provision of this Ninth Supplemental Indenture or the Indenture that is required to be included by the Trust Indenture Act of 1939 as in force at the date as of which this Ninth Supplemental Indenture is executed, the provision required by said Act shall control.
SECTION 9. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Ninth Supplemental Indenture or for or in respect of the Recitals contained herein, all of which are made solely by the Issuer, the Company and each of the Guarantors.
[Remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have caused this Ninth Supplemental Indenture to be duly executed as of the date first above written.
| K. HOVNANIAN ENTERPRISES, INC., | ||
| as Issuer | ||
| By: | /s/ David G. Valiaveedan | |
| Name: | David G. Valiaveedan | |
| Title: | Vice President—Finance and Treasurer | |
| HOVNANIAN ENTERPRISES, INC. | ||
| By: | /s/ David G. Valiaveedan | |
| Name: | David G. Valiaveedan | |
| Title: | Vice President—Finance and Treasurer | |
| K. HOV IP, II, INC. | ||
| By: | /s/ David G. Valiaveedan | |
| Name: | David G. Valiaveedan | |
| Title: | Chief Executive Officer and Treasurer | |
| ON BEHALF OF EACH OF THE ENTITIES LISTED ON SCHEDULE I HERETO | ||
| By: | /s/ David G. Valiaveedan | |
| Name: | David G. Valiaveedan | |
| Title: | Vice President—Finance and Treasurer | |
| WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee and Collateral Agent | ||
| By: | /s/ Joshua C. Jones | |
| Name: | Joshua C. Jones | |
| Title: | Assistant Vice President | |
SCHEDULE I
K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.
K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC
K. HOVNANIAN GREAT WESTERN HOMES, LLC
NEW LAND TITLE AGENCY, L.L.C.
K. HOVNANIAN AT PALM VALLEY, L.L.C.
K. HOVNANIAN AT QUAIL CREEK, L.L.C.
K. HOVNANIAN AT RANCHO CABRILLO, LLC
K. HOVNANIAN AT BELCARA, LLC
STONEBROOK HOMES, INC.
K. HOVNANIAN COMPANIES OF CALIFORNIA, INC.
K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC.
K. HOVNANIAN AT SYCAMORE, INC.
K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC.
K. HOVNANIAN AT BRIDGEPORT, INC.
K. HOVNANIAN AT OCEAN WALK, INC.
K. HOVNANIAN AT DOMINGUEZ HILLS, INC.
SEABROOK ACCUMULATION CORPORATION
K. HOVNANIAN AT WINCHESTER, LLC
K. HOVNANIAN’S FOUR SEASONS, LLC
K. HOVNANIAN AT MENIFEE, LLC
K. HOVNANIAN AT RANCHO SANTA MARGARITA, LLC
K. HOVNANIAN AT ARBOR HEIGHTS, LLC
K. HOVNANIAN AT THE GABLES, LLC
K. HOVNANIAN AT RIVERBEND, LLC
K. HOVNANIAN AT ENCINITAS RANCH, LLC
K. HOVNANIAN AT PARK LANE, LLC
K. HOVNANIAN AT TRAIL RIDGE, LLC
K. HOVNANIAN’S FOUR SEASONS AT HEMET, LLC
K. HOVNANIAN COMMUNITIES, INC.
K. HOVNANIAN AT 4S, LLC
K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.
K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC.
K. HOVNANIAN COMPANIES, LLC
K. HOVNANIAN AT AVENUE ONE, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, LLC
K. HOVNANIAN AT MOSAIC, LLC
K. HOVNANIAN AT OLDE ORCHARD, LLC
K. HOVNANIAN AT EASTLAKE, LLC
K. HOVNANIAN AT LA COSTA, LLC
K. HOVNANIAN AT SKYE ISLE, LLC
K. HOVNANIAN AT LA HABRA KNOLLS, LLC
K. HOVNANIAN AT CORTEZ HILL, LLC
K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, LLC
K. HOVNANIAN AT ACQUA VISTA, LLC
K. HOVNANIAN AT THE CROSBY, LLC
K. HOVNANIAN AT ALISO, LLC
K. HOVNANIAN AT BELLA LAGO, LLC
K. HOVNANIAN AT THE PRESERVE, LLC
K. HOVNANIAN AT LAKE RANCHO VIEJO, LLC
K. HOVNANIAN AT THOMPSON RANCH, LLC
K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C.
K. HOVNANIAN AT CAPISTRANO, L.L.C.
K. HOVNANIAN AT EVERGREEN, L.L.C.
K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.
K. HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C.
K. HOVNANIAN AT PRADO, L.L.C.
K. HOVNANIAN AT SAGE, L.L.C.
K. HOVNANIAN AT CIELO, L.L.C.
K. HOVNANIAN AT PIAZZA D’ORO, L.L.C.
K. HOVNANIAN AT LA COSTA GREENS, L.L.C.
K. HOVNANIAN AT COASTLINE, L.L.C.
K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC.
K. HOVNANIAN AT STANTON, LLC
K. HOVNANIAN AT BAKERSFIELD 463, L.L.C.
K. HOVNANIAN AT LA LAGUNA, L.L.C.
K. HOVNANIAN AT MALAN PARK, L.L.C.
K. HOVNANIAN AT PIAZZA SERENA, L.L.C
K. HOVNANIAN AT VICTORVILLE, L.L.C.
K. HOVNANIAN AT VISTA DEL SOL, L.L.C.
K. HOVNANIAN AT EL DORADO RANCH II, L.L.C.
K. HOVNANIAN AT EL DORADO RANCH, L.L.C.
K. HOVNANIAN AT WEST VIEW ESTATES, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT MORENO VALLEY, L.L.C.
K. HOVNANIAN AT CHARTER WAY, LLC
K. HOVNANIAN AT FRESNO, LLC
K. HOVNANIAN AT JAEGER RANCH, LLC
K. HOVNANIAN AT MELANIE MEADOWS, LLC
K. HOVNANIAN AT MUIRFIELD, LLC
K. HOVNANIAN AT PARKSIDE, LLC
K. HOVNANIAN AT SANTA NELLA, LLC
K. HOVNANIAN AT VALLE DEL SOL, LLC
K. HOVNANIAN AT WESTSHORE, LLC
K. HOVNANIAN AT WHEELER RANCH, LLC
K. HOVNANIAN AT WOODCREEK WEST, LLC
K. HOVNANIAN’S FOUR SEASONS AT LOS BANOS, LLC
K. HOVNANIAN AT FIDDYMENT RANCH, LLC
K. HOVNANIAN AT SHELDON GROVE, LLC
K. HOVNANIAN AT WATERSTONE, LLC
K. HOVNANIAN AT CARLSBAD, LLC
K. HOVNANIAN AT MANTECA, LLC
K. HOVNANIAN AT POSITANO, LLC
K. HOVNANIAN AT SUNRIDGE PARK, LLC
K. HOVNANIAN AT GILROY, LLC
K. HOVNANIAN AT ANDALUSIA, LLC
K. HOVNANIAN AT VERONA ESTATES, LLC
K. HOVNANIAN AT PAVILION PARK, LLC
K. HOVNANIAN AT GILROY 60, LLC
K. HOVNANIAN AT BLACKSTONE, LLC
K. HOVNANIAN AT VINEYARD HEIGHTS, LLC
K. HOVNANIAN AT CEDAR LANE, LLC
K. HOVNANIAN DEVELOPMENTS OF D.C., INC.
K. HOVNANIAN HOMES OF D.C., L.L.C.
K. HOVNANIAN AT MANSFIELD I, L.L.C.
K. HOVNANIAN AT MANSFIELD II, L.L.C.
K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.
K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C.
K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.
K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.
K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C.
K. HOVNANIAN AT WAYNE, VIII, L.L.C.
K. HOVNANIAN AT CHESTER I, L.L.C.
K. HOVNANIAN AT WEST WINDSOR, L.L.C.
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.
K. HOVNANIAN AT LAWRENCE V, L.L.C.
WASHINGTON HOMES, INC.
K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.
K. HOVNANIAN HOMES OF DELAWARE, L.L.C.
WTC VENTURES, L.L.C.
WOODMORE RESIDENTIAL, L.L.C.
K. HOVNANIAN HAMPTONS AT OAK CREEK II, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT SILVER MAPLE FARM, L.L.C.
K. HOVNANIAN HOMES OF LONGACRE VILLAGE, L.L.C.
KHH SHELL HALL LOAN ACQUISITION, LLC
K. HOVNANIAN AT PLANTATION LAKES, L.L.C.
K. HOVNANIAN AT BRENFORD STATION, LLC
K. HOVNANIAN AT OCEAN VIEW BEACH CLUB, LLC
K. HOVNANIAN AT ASHBY PLACE, LLC
K. HOVNANIAN AT NOTTINGHAM MEADOWS, LLC
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.
K. HOVNANIAN WINDWARD HOMES, LLC
HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.
K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.
K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C.
K. HOVNANIAN AT LAKE BURDEN, LLC
K. HOVNANIAN FIRST HOMES, L.L.C.
K. HOVNANIAN FLORIDA REALTY, L.L.C.
EASTERN NATIONAL TITLE AGENCY, LLC
K. HOVNANIAN STERLING RANCH, LLC
K. HOVNANIAN GRAND CYPRESS, LLC
K. HOVNANIAN AT PICKETT RESERVE, LLC
K. HOVNANIAN SOUTH FORK, LLC
K. HOVNANIAN ESTATES AT WEKIVA, LLC
K. HOVNANIAN JUPITER FARMS, LLC
K. HOVNANIAN RIVERSIDE, LLC
K. HOVNANIAN AT WALKERS GROVE, LLC
K. HOVNANIAN CYPRESS KEY, LLC
K. HOVNANIAN BELMONT RESERVE, LLC
K. HOVNANIAN TERRA BELLA, LLC
K. HOVNANIAN UNION PARK, LLC
K. HOVNANIAN AT TERRA BELLA TWO, LLC
K. HOVNANIAN AT HILLTOP RESERVE, LLC
K. HOVNANIAN AT CASA DEL MAR, LLC
K. HOVNANIAN AT CORAL LAGO, LLC
K. HOVNANIAN AT HILLTOP RESERVE II, LLC
K. HOVNANIAN GRANDEFIELD, LLC
K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC.
K. HOVNANIAN HOMES OF GEORGIA, L.L.C.
K. HOVNANIAN HOMES AT CREEKSIDE, LLC
K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC.
K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C.
K. HOVNANIAN ESTATES AT REGENCY, L.L.C.
GLENRISE GROVE, L.L.C.
ARBOR TRAILS, LLC
K. HOVNANIAN AT ORCHARD MEADOWS, LLC
K. HOVNANIAN AT SAUGANASH GLEN, LLC
K. HOVNANIAN AT PRAIRIE POINTE, LLC
K. HOVNANIAN AT ISLAND LAKE, LLC
K. HOVNANIAN AT MEADOWRIDGE VILLAS, LLC
K. HOVNANIAN AT FAIRFIELD RIDGE, LLC
K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C.
K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC.
WH PROPERTIES, INC.
K. HOVNANIAN COMPANIES OF MARYLAND, INC.
K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.
K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C.
K. HOVNANIAN AT WILLOW BROOK, L.L.C.
K. HOVNANIAN AT RODERUCK, L.L.C.
WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C.
K. HOVNANIAN HOMES OF MARYLAND, L.L.C.
K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C.
RIDGEMORE UTILITY, L.L.C.
WOODLAND LAKE CONDOMINIUMS AT BOWIE NEW TOWN, L.L.C.
PADDOCKS, L.L.C.
K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C.
PINE AYR, LLC
K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C.
K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.
HOVNANIAN LAND INVESTMENT GROUP, L.L.C.
HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C.
K. HOVNANIAN HOMES AT RUSSETT, L.L.C.
K. HOVNANIAN HOMES AT MAXWELL PLACE, L.L.C.
FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C.
HOMEBUYERS FINANCIAL SERVICES, L.L.C.
K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C.
K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C.
K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C.
K. HOVNANIAN HOMES AT THE HIGHLANDS, LLC
K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC.
K. HOVNANIAN HOMES OF MINNESOTA, L.L.C.
K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C.
K. HOVNANIAN LIBERTY ON BLUFF CREEK, LLC
K. HOVNANIAN TIMBRES AT ELM CREEK, LLC
K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK II, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT AUTUMN MEADOWS, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW WEST, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT FOUNDER’S RIDGE, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT REGENT’S POINT, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT BRYNWOOD, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT ARBOR CREEK, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT HARPERS STREET WOODS, LLC
K. HOVNANIAN HOMES OF MINNESOTA AT OAKS OF OXBOW, LLC
K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.
K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC.
WESTMINSTER HOMES, INC.
K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C.
K. HOVNANIAN HOMES AT REEDY CREEK, LLC
K. HOVNANIAN AT NEUSE RIVER, LLC
K. HOVNANIAN HOMES AT BROOK MANOR, LLC
K. HOVNANIAN AT BURCH KOVE, LLC
K. HOVNANIAN AT LILY ORCHARD, LLC
K. HOVNANIAN WYNDFALL ESTATES AT REGENCY, LLC
K. HOVNANIAN AT MAIN STREET SQUARE, LLC
K. HOVNANIAN AT THE TOWNS AT CROSSROADS, LLC
K. HOVNANIAN AT SMITHVILLE, INC.
K. HOVNANIAN CONSTRUCTION III, INC
LANDARAMA, INC.
K. HOVNANIAN CONSTRUCTION II, INC
MCNJ, INC.
EASTERN TITLE AGENCY, INC.
K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC.
K. HOVNANIAN AT OCEAN TOWNSHIP, INC
K. HOVNANIAN PROPERTIES OF RED BANK, INC.
K. HOVNANIAN AT MAHWAH VI, INC.
K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC.
K. HOVNANIAN ACQUISITIONS, INC.
K. HOVNANIAN AT BLUE HERON PINES, L.L.C.
K. HOVNANIAN AT JACKSON, L.L.C.
K. HOVNANIAN AT BERKELEY, L.L.C.
K. HOVNANIAN AT GUTTENBERG, L.L.C.
K. HOVNANIAN AT CLIFTON, L.L.C.
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II, L.L.C.
K. HOVNANIAN AT JERSEY CITY IV, L.L.C.
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C.
K. HOVNANIAN AT NORTHFIELD, L.L.C.
THE MATZEL & MUMFORD ORGANIZATION, INC
K. HOVNANIAN AT MANSFIELD III, L.L.C.
K. HOVNANIAN AT WASHINGTON, L.L.C.
K. HOVNANIAN AT NORTH HALEDON, L.L.C.
K. HOVNANIAN AT MARLBORO VI, L.L.C.
K. HOVNANIAN AT MARLBORO VII, L.L.C.
K. HOVNANIAN AT HAMBURG, L.L.C.
K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C
K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.
K. HOVNANIAN AT BARNEGAT I, L.L.C.
K. HOVNANIAN AT CRANBURY, L.L.C.
K. HOVNANIAN AT SAYREVILLE, L.L.C.
K. HOVNANIAN AT CEDAR GROVE III, L.L.C.
K. HOVNANIAN AT WOOLWICH I, L.L.C.
K. HOVNANIAN AT WAYNE IX, L.L.C.
K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.
K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C.
K. HOVNANIAN VENTURE I, L.L.C.
K. HOVNANIAN AT MANALAPAN II, L.L.C.
K. HOVNANIAN AT DENVILLE, L.L.C.
K. HOVNANIAN AT RANDOLPH I, L.L.C.
K. HOVNANIAN AT MIDDLETOWN II, L.L.C.
K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C.
K. HOVNANIAN AT OLD BRIDGE, L.L.C.
K. HOVNANIAN AT JACKSON I, L.L.C.
M&M AT CHESTERFIELD, LLC
K. HOVNANIAN AT FOREST MEADOWS, L.L.C.
K. HOVNANIAN HOLDINGS NJ, L.L.C.
K. HOVNANIAN NORTHEAST SERVICES, L.L.C.
K. HOVNANIAN AT SOMERS POINT, L.L.C.
K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.
K. HOVNANIAN AT GREAT NOTCH, L.L.C.
K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C.
K. HOVNANIAN AT NORTH BERGEN. L.L.C.
K. HOVNANIAN AT MANALAPAN III, L.L.C.
M&M AT WEST ORANGE, L.L.C.
K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.
K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.
K. HOVNANIAN AT BRIDGEWATER I, L.L.C.
K. HOVNANIAN AT EDGEWATER, L.L.C.
K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C.
K. HOVNANIAN AT EDGEWATER II, L.L.C.
K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.
MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C.
K. HOVNANIAN AT CHESTERFIELD, L.L.C.
K. HOVNANIAN AT HAWTHORNE, L.L.C.
K. HOVNANIAN AT FLORENCE I, L.L.C.
K. HOVNANIAN AT FLORENCE II, L.L.C.
K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.
BUILDER SERVICES NJ, L.L.C.
K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.
K. HOVNANIAN AT VINELAND, L.L.C.
K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.
K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.
M&M AT WHEATENA URBAN RENEWAL, L.L.C.
K. HOVNANIAN AT MILLVILLE I, L.L.C.
K. HOVNANIAN AT PITTSGROVE, L.L.C.
K. HOVNANIAN AT MONTVALE, L.L.C.
MATZEL & MUMFORD AT EGG HARBOR, L.L.C.
K. HOVNANIAN AT FRANKLIN, L.L.C.
K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.
K. HOVNANIAN AT MILLVILLE II, L.L.C.
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.
K. HOVNANIAN AT MONROE IV, L.L.C.
K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C.
K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C.
K. HOVNANIAN AT HUDSON POINTE, L.L.C.
K. HOVNANIAN AT PARSIPPANY-TROY HILLS, L.L.C.
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.
K. HOVNANIAN AT BARNEGAT II, L.L.C.
K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C.
K. HOVNANIAN AT THE MONARCH, L.L.C.
K. HOVNANIAN AT RIDGEMONT, L.L.C.
K. HOVNANIAN AT MONROE NJ, L.L.C.
K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C.
F&W MECHANICAL SERVICES, L.L.C.
K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.
K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C.
TERRAPIN REALTY, L.L.C.
K. HOVNANIAN AT FIFTH AVENUE, L.L.C.
K. HOVNANIAN AT MAPLE AVENUE, L.L.C.
K. HOVNANIAN AT NORTH CALDWELL III, L.L.C.
K. HOVNANIAN AT KEYPORT, L.L.C.
M&M AT CRESCENT COURT, L.L.C.
K. HOVNANIAN AT OCEANPORT, L.L.C.
K. HOVNANIAN AT STATION SQUARE, L.L.C.
AUDDIE ENTERPRISES, L.L.C.
K. HOVNANIAN AT SHREWSBURY, LLC
K. HOVNANIAN AT BRANCHBURG, L.L.C.
K. HOVNANIAN AT CEDAR GROVE V, L.L.C.
K. HOVNANIAN AT NORTH CALDWELL IV, L.L.C.
K. HOVNANIAN AT PARSIPPANY, L.L.C.
K. HOVNANIAN AT SOUTH BRUNSWICK II, LLC
K. HOVNANIAN AT MONTVALE II, LLC
K. HOVNANIAN AT FRANKLIN II, L.L.C.
K. HOVNANIAN AT HOWELL, LLC
K. HOVNANIAN AT LONG HILL, L.L.C.
K. HOVNANIAN AT FRANKLIN III, LLC
K. HOVNANIAN MANALAPAN ACQUISITION, LLC
K. HOVNANIAN AT MONTGOMERY, LLC
K. HOVNANIAN AT MONROE NJ II, LLC
K. HOVNANIAN AT MIDDLETOWN III, LLC
K. HOVNANIAN AT MORRIS TWP, LLC
K. HOVNANIAN AT CEDAR GROVE VI, LLC
K. HOVNANIAN AT HOWELL II, LLC
K. HOVNANIAN AT ASBURY PARK URBAN RENEWAL, LLC
K. HOVNANIAN AT EAST WINDSOR, LLC
K. HOVNANIAN AT SOUTH BRUNSWICK III, LLC
K. HOVNANIAN AT MIDDLETOWN IV, LLC
K. HOVNANIAN CLASSICS, L.L.C.
K. HOVNANIAN AT WALDWICK, LLC
K. HOVNANIAN COMPANIES OF NEW YORK, INC.
K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.
K. HOVNANIAN AT MONROE II, INC.
K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.
K. HOVNANIAN AT NEW WINDSOR, L.L.C.
K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.
K. HOVNANIAN OHIO REALTY, L.L.C.
K. HOVNANIAN SUMMIT HOMES, L.L.C.
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.
K. HOVNANIAN OSTER HOMES, L.L.C.
K. HOVNANIAN ABERDEEN, LLC
K. HOVNANIAN LADUE RESERVE, LLC
K. HOVNANIAN MONARCH GROVE, LLC
K. HOVNANIAN WATERBURY, LLC
K. HOVNANIAN WHITE ROAD, LLC
K. HOVNANIAN INDIAN TRAILS, LLC
K. HOVNANIAN HIDDEN HOLLOW, LLC
K. HOVNANIAN RIVENDALE, LLC
K. HOVNANIAN WOODLAND POINTE, LLC
K. HOVNANIAN EDGEBROOK, LLC
K. HOVNANIAN SCHADY RESERVE, LLC
K. HOVNANIAN HIGHLAND RIDGE, LLC
K. HOVNANIAN BELDEN POINTE, LLC
NEW HOME REALTY, LLC
K. HOVNANIAN FALLS POINTE, LLC
K. HOVNANIAN LAKES OF GREEN, LLC
K. HOVNANIAN WOODRIDGE PLACE, LLC
K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.
K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.
K. HOVNANIAN PA REAL ESTATE, INC.
GOVERNOR’S ABSTRACT CO., INC.
K. HOVNANIAN AT UPPER MAKEFIELD I, INC.
K. HOVNANIAN AT HERSHEY’S MILL, INC.
K. HOVNANIAN AT THORNBURY, INC.
K. HOVNANIAN AT SAWMILL, INC.
K. HOVNANIAN AT LOWER MORELAND I, L.L.C.
K. HOVNANIAN AT LOWER MORELAND II, L.L.C.
K. HOVNANIAN AT NORTHAMPTON, L.L.C.
K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.
K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C.
K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C.
K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C.
K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C.
K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.
K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.
K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C.
K. HOVNANIAN AT RAPHO, L.L.C
K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.
K. HOVNANIAN AT SILVER SPRING, L.L.C.
K. HOVNANIAN AT ALLENTOWN, L.L.C.
K. HOVNANIAN AT CAMP HILL, L.L.C.
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C.
BUILDER SERVICES PA, L.L.C.
K. HOVNANIAN AT EAST BRANDYWINE, L.L.C.
K. HOVNANIAN AT MIDDLETOWN, LLC
K. HOVNANIAN AT CHADDS FORD, LLC
K. HOVNANIAN AT DOYLESTOWN, LLC
K. HOVNANIAN AT UPPER PROVIDENCE, LLC
K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC.
K. HOVNANIAN HOMES OF SOUTH CAROLINA, LLC
K. HOVNANIAN FOUR SEASONS AT GOLD HILL, LLC
K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C.
K. HOVNANIAN HOMES AT ST. JAMES PLACE, LLC
K. HOVNANIAN HOMES AT THE PADDOCKS, LLC
SHELL HALL CLUB AMENITY ACQUISITION, LLC
SHELL HALL LAND ACQUISITION, LLC
SHELL HALL LOAN ACQUISITION, LLC
K. HOVNANIAN HOMES AT THE ABBY, LLC
K. HOVNANIAN AT COOSAW POINT, LLC
K. HOVNANIAN HOMES AT SALT CREEK LANDING, LLC
K. HOVNANIAN’S FOUR SEASONS AT THE LAKES AT CANE BAY, LLC
K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.
PARK TITLE COMPANY, LLC
K. HOVNANIAN HOMES - DFW, L.L.C.
K. HOVNANIAN HOMES OF HOUSTON, L.L.C.
K. HOVNANIAN OF HOUSTON II, L.L.C.
K. HOVNANIAN DFW RIDGEVIEW, LLC
K. HOVNANIAN DFW BELMONT, LLC
K. HOVNANIAN DFW LIBERTY CROSSING, LLC
K. HOVNANIAN DFW INSPIRATION, LLC
K. HOVNANIAN DFW HARMON FARMS, LLC
K. HOVNANIAN DFW AUBURN FARMS, LLC
K. HOVNANIAN DFW LIGHT FARMS, LLC
K. HOVNANIAN DFW HOMESTEAD, LLC
K. HOVNANIAN DFW SEVENTEEN LAKES, LLC
K. HOVNANIAN DFW PALISADES, LLC
K. HOVNANIAN HOMES OF VIRGINIA, INC.
K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.
FOUNDERS TITLE AGENCY, INC.
K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.
K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, LLC
K. HOVNANIAN SUMMIT HOLDINGS, L.L.C.
DULLES COPPERMINE, L.L.C.
K. HOVNANIAN HOMES AT CAMERON STATION, LLC
K. HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.
K. HOVNANIAN’S FOUR SEASONS AT NEW KENT VINEYARDS, L.L.C.
K. HOVNANIAN AT LEE SQUARE, L.L.C.
K. HOVNANIAN AT SEASONS LANDING, LLC
K. HOVNANIAN AT LENAH WOODS, LLC
K. HOVNANIAN AT RESERVES AT WHEATLANDS, LLC
K. HOVNANIAN AT LAKE RIDGE ESTATES, LLC
K. HOVNANIAN AT RESIDENCE AT DISCOVERY SQUARE, LLC
K. HOVNANIAN HOMES AT WILLOWSFORD GRANT, LLC
K. HOVNANIAN AT ESTATES AT WHEATLANDS, LLC
K. HOVNANIAN AT HUNTER’S POND, LLC
K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC.
K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.
K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C.
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C.
K. HOVNANIAN AT HUNTFIELD, LLC
Exhibit 99.1
| HOVNANIAN ENTERPRISES, INC. | For Immediate Release |
| Contact: | J. Larry Sorsby | Jeffrey T. O’Keefe | ||
| Executive Vice President & CFO | Vice President of Investor Relations | |||
| 732-747-7800 | 732-747-7800 |
K. HOVNANIAN ENTERPRISES, INC. ANNOUNCES EXPIRATION OF CONSENT
SOLICITATION AND RECEIPT OF REQUISITE CONSENTS TO AMEND INDENTURE FOR
ITS SECOND LIEN NOTES AND ANNOUNCES EXTENSION OF EXPIRATION DATE FOR
THE CONSENT SOLICITATION FOR ITS FIRST LIEN NOTES
RED BANK, NJ, September 23, 2014 – Hovnanian Enterprises, Inc. (NYSE: HOV) (the “Company”) announced today that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), has received the requisite consents to adopt the proposed amendments (the “Proposed Amendments”) to the indenture governing K. Hovnanian’s 9.125% Senior Secured Second Lien Notes due 2020 (the “Second Lien Notes”) in connection with K. Hovnanian’s previously announced solicitation of consents with respect to K. Hovnanian’s 7.25% Senior Secured First Lien Notes due 2020 (the “First Lien Notes”) and Second Lien Notes (the “Consent Solicitations”), which expired with respect to the Second Lien Notes at 5:00 p.m., New York City time, on September 22, 2014 (the “Second Lien Notes Expiration Date”). The Company also announced that K. Hovnanian has extended the expiration date of the Consent Solicitation with respect to the First Lien Notes as discussed below. The Consent Solicitations are made in accordance with the terms and subject to the conditions stated in a Consent Solicitation Statement, dated September 11, 2014, and in a related Consent Form (together, the “Solicitation Documents”), to holders of record (“Holders”) as of 5:00 p.m., New York City time, on September 10, 2014.
K. Hovnanian has notified Wilmington Trust, National Association, the trustee and collateral agent under the indenture related to the Second Lien Notes (in both such capacities, the “Trustee”), that it has received the consent of the Holders of at least a majority in aggregate principal amount of outstanding Second Lien Notes as required to adopt the Proposed Amendments to the indenture governing the Second Lien Notes. Accordingly, K. Hovnanian, the Company, as guarantor, the other guarantors party thereto (together with the Company, the “Guarantors”), and the Trustee executed on September 22, 2014 a supplemental indenture to the indenture governing the Second Lien Notes (the “Supplemental Indenture”) effecting the Proposed Amendments. Consents under the Consent Solicitation with respect to the Second Lien Notes may no longer be revoked. The Supplemental Indenture is effective and constitutes a binding agreement among K. Hovnanian, the Guarantors and the Trustee as of its date of execution. However, the Supplemental Indenture, by its terms, provides that the Proposed Amendments will not become operative unless and until K. Hovnanian pays the consent consideration to the Information and Tabulation Agent for the consenting Holders of Second Lien Notes.
Holders of the Second Lien Notes who validly delivered and did not revoke consents to the Proposed Amendments in the manner described in the Solicitation Documents prior to the Second Lien Notes Expiration Date are eligible to receive consent consideration equal to $2.50 per $1,000 principal amount of Second Lien Notes for which consents were validly delivered prior to the Second Lien Notes Expiration Date (and not validly revoked). Holders of Second Lien Notes that provide consents after the Second Lien Notes Expiration Date will not receive consent consideration.
The Company also announced today that K. Hovnanian has modified the terms of the Consent Solicitation with respect to its First Lien Notes to extend the expiration date to 5:00 p.m., New York City time, on September 25, 2014 (such time and date, as the same may be extended or earlier terminated with respect to the First Lien Notes, the “First Lien Notes Expiration Date”).
Holders of First Lien Notes who validly deliver consents (and do not validly revoke such consents prior to the execution and effectiveness of a supplemental indenture effecting the Proposed Amendments to the indenture governing the First Lien Notes) on or prior to the First Lien Notes Expiration Date will be eligible to receive consent consideration equal to $2.50 per $1,000 principal amount of First Lien Notes for which consents have been validly delivered prior to the First Lien Notes Expiration Date (and not validly revoked). Holders of First Lien Notes who have previously delivered consents do not need to redeliver such consents or take any other action in response to this announcement in order to consent or receive the consent consideration upon the successful conclusion of the Consent Solicitation with respect to the First Lien Notes. Holders are referred to the Solicitation Documents for the detailed terms and conditions of the Consent Solicitation with respect to the First Lien Notes, all of which remain unchanged except as set forth in this release.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the Solicitation Agents in connection with the Consent Solicitations. Persons with questions regarding the Consent Solicitations should contact J.P. Morgan Securities LLC at (212) 270-1200 (collect) or (800) 245-8812 (toll-free) (Attention: Liability Management Group), Citigroup Global Markets Inc. at (212) 723-6106 (collect) or (800) 558-3745 (toll-free) (Attention: Liability Management Group) or Credit Suisse Securities (USA) LLC at (212) 325-2476 (collect) or (800) 820-1653 (toll-free) (Attention: Liability Management Group). Requests for copies of the Solicitation Documents and other related materials should be directed to Global Bondholder Services Corporation, the Information and Tabulation Agent for the Consent Solicitations, at (212) 430-3774 (collect) or (866) 470-4200 (toll-free).
K. Hovnanian’s obligations to pay the consent consideration are set forth solely in the Solicitation Documents. This press release shall not constitute an offer to sell nor a solicitation of an offer to purchase any First Lien Notes, Second Lien Notes or other securities. The Consent Solicitations are being made only by, and pursuant to the terms of, the Solicitation Documents, and the information in this news release is qualified by reference to the Solicitation Documents. No recommendation is made, or has been authorized to be made, as to whether or not Holders of First Lien Notes should consent to the adoption of the Proposed Amendments pursuant to the Consent Solicitation with respect to the First Lien Notes. Each Holder of First Lien Notes must make its own decision as to whether to give its consent to the Proposed Amendments. The Consent Solicitation with respect to the First Lien Notes is not being made in any jurisdiction in which the making thereof would not be in compliance with the applicable laws of such jurisdiction. In any jurisdiction in which the Consent Solicitation with respect to the First Lien Notes is required to be made by a licensed broker or dealer, the Consent Solicitation will be deemed to be made on behalf of K. Hovnanian by the Solicitation Agents or one or more registered brokers or dealers licensed under the laws of such jurisdiction. None of the Company, K. Hovnanian, any Solicitation Agents or the Information and Tabulation Agent makes any recommendation in connection with the Consent Solicitation with respect to the First Lien Notes. Subject to applicable law, K. Hovnanian may amend, further extend or terminate the Consent Solicitation with respect to the First Lien Notes.
About Hovnanian Enterprises
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank, New Jersey. The Company is one of the nation’s largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C. and West Virginia. The Company’s homes are marketed and sold under the trade names K. Hovnanian® Homes®, Brighton Homes® and Parkwood Builders. As the developer of K. Hovnanian’s® Four Seasons communities, the Company is also one of the nation’s largest builders of active adult homes.
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Forward-Looking Statements
All statements in this press release that are not historical facts should be considered as “forward-looking statements.” Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Although we believe that our plans, intentions and expectations reflected in, or suggested by, such forward looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic, industry and business conditions and impacts of the sustained homebuilding downturn; (2) adverse weather and other environmental conditions and natural disasters; (3) changes in market conditions and seasonality of the Company’s business; (4) changes in home prices and sales activity in the markets where the Company builds homes; (5) government regulation, including regulations concerning development of land, the home building, sales and customer financing processes, tax laws and the environment; (6) fluctuations in interest rates and the availability of mortgage financing; (7) shortages in, and price fluctuations of, raw materials and labor; (8) the availability and cost of suitable land and improved lots; (9) levels of competition; (10) availability of financing to the Company; (11) utility shortages and outages or rate fluctuations; (12) levels of indebtedness and restrictions on the Company’s operations and activities imposed by the agreements governing the Company’s outstanding indebtedness; (13) the Company’s sources of liquidity; (14) changes in credit ratings; (15) availability of net operating loss carryforwards; (16) operations through joint ventures with third parties; (17) product liability litigation, warranty claims and claims made by mortgage investors; (18) successful identification and integration of acquisitions; (19) significant influence of the Company’s controlling stockholders; (20) changes in tax laws affecting the after-tax costs of owning a home; (21) geopolitical risks, terrorist acts and other acts of war; and (22) other factors described in detail in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2013 and subsequent filings with the Securities and Exchange Commission. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
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