K. Hovnanian Enterprises, Inc. Announces Completion of Early Tender Period and Early Settlement Election Relating to Tender Offers for Certain of Its Senior and Senior Subordinated Notes

/ Source: GlobeNewswire

RED BANK, N.J., Feb. 11, 2011 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE:HOV) (the "Company") announced today that the early tender period in respect of the previously announced cash tender offers by its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. ("K. Hovnanian") (each, a "Tender Offer" and collectively, the "Tender Offers"), for any and all of K. Hovnanian's outstanding 8% Senior Notes due 2012 (CUSIP 442488AL6) (ISIN US442488AL67), 8 7/8% Senior Subordinated Notes due 2012 (CUSIP 442488AM4) (ISIN US442488AM41) and 7 ¾% Senior Subordinated Notes due 2013 (CUSIP 442488AP7) (ISIN US442488AP71) (collectively, the "Notes") expired today at 5:00 p.m., New York City time (the "Early Tender Date").   The Company further announced that withdrawal rights with respect to Notes tendered in the Tender Offers expired today at 5:00 p.m., New York City time. Holders of Notes who validly tendered and did not validly withdraw their Notes on or prior to the Early Tender Date, will be entitled to receive the applicable Total Tender Offer Consideration, which includes an early tender premium of $30 for each $1,000 principal amount of Notes validly tendered on or before the Early Tender Date and accepted in the applicable Tender Offer.

The table set forth below lists the aggregate principal amount of each series of Notes subject to the Tender Offers validly tendered and not validly withdrawn as of the Early Tender Date, and the consideration applicable to each such series of Notes.

K. Hovnanian has elected to exercise the Early Settlement Election described in the Offer to Purchase dated January 31, 2011, relating to the Tender Offers (the "Offer to Purchase"). As a result, holders of Notes who validly tendered and did not validly withdraw their Notes on or prior to the Early Tender Date will receive the applicable Total Tender Offer Consideration for such tendered Notes on February 14, 2011 (the "Early Settlement Date"), plus accrued and unpaid interest on the purchased Notes from the last interest payment date for the Notes to, but not including, the Early Settlement Date, subject to the satisfaction or waiver of the conditions to each Tender Offer as set forth in the Offer to Purchase. Holders of Notes who validly tender their Notes after the Early Tender Date but on or before 12:00 midnight, New York City time, on February 28, 2011 (the "Expiration Date") will receive only the applicable Late Tender Offer Consideration for any such Notes that are accepted for purchase in the Tender Offers.

The consummation of each Tender Offer (including the payment of the Total Tender Offer Consideration on the Early Settlement Date) is not conditioned upon any minimum amount of Notes being tendered but is conditioned upon the satisfaction or waiver of the conditions set forth in the Offer to Purchase, including the receipt of net proceeds sufficient to fund the aggregate Total Tender Offer Consideration and the payment of accrued and unpaid interest in respect of all Notes from certain public underwritten offerings on terms and conditions satisfactory to K. Hovnanian. No Tender Offer is conditioned upon the completion of any other Tender Offer. 

Credit Suisse Securities (USA) LLC is the Dealer Manager for the Tender Offers. Persons with questions regarding the Tender Offers should contact Credit Suisse Securities (USA) LLC at (212) 538-2147 (collect) or (800) 820-1653 (toll-free) (Attention: Liability Management Group). Requests for copies of the Offer to Purchase, the related Letter of Transmittal and other related materials should be directed to Bondholder Communications Group, the Information and Tender Agent for the Tender Offers, at (888) 385-2663 (toll-free) or alternatively, the documents may be downloaded at www.bondcom.com/khov.

K. Hovnanian's obligations to accept any Notes tendered and to pay the applicable consideration for them are set forth solely in the Offer to Purchase and the related Letter of Transmittal. This press release is neither an offer to purchase nor a solicitation of an offer to sell any Notes. The Tender Offers are made only by, and pursuant to the terms of, the Offer to Purchase, and the information in this news release is qualified by reference to the Offer to Purchase and the related Letter of Transmittal. The Tender Offers are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers are required to be made by a licensed broker or dealer, they shall be deemed to be made by the Dealer Manager on behalf of K. Hovnanian. None of K. Hovnanian, the Dealer Manager or the Information and Tender Agent makes any recommendation in connection with the Tender Offers. Subject to applicable law, K. Hovnanian may amend, extend or, subject to certain conditions, terminate any Tender Offer. 

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, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian® Homes®, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes and Oster Homes. 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.

The Hovnanian Enterprises, Inc. logo is available at

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. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and 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 in order to satisfy the financing condition for the Tender Offers; (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 and warranty claims; (18) successful identification and integration of acquisitions; (19) significant influence of the Company's controlling stockholders; (20) geopolitical risks, terrorist acts and other acts of war; and (21) other factors described in detail in the Company's Annual Report on Form 10-K/A for the year ended October 31, 2010. 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.

CONTACT: J. Larry Sorsby Executive Vice President & CFO 732-747-7800 Jeffrey T. O'Keefe Vice President of Investor Relations 732-747-7800