RED BANK, N.J., Jan. 31, 2011 (GLOBE NEWSWIRE) -- Hovnanian Enterprises, Inc. (NYSE:HOV) (the "Company") announced today that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. ("K. Hovnanian"), has commenced cash tender offers (each, a "Tender Offer" and collectively, the "Tender Offers") for any and all of its outstanding 8% Senior Notes due 2012 (CUSIP 442488AL6) (ISIN US442488AL67), 8 7/8% Senior Subordinated Notes due 2012 (CUSIP 442488AM4) (ISIN US442488AM41) and 7 3/4% Senior Subordinated Notes due 2013 (CUSIP 442488AP7) (ISIN US442488AP71) (collectively, the "Notes"). The terms and conditions of the Tender Offers are described in an Offer to Purchase, dated January 31, 2011, and a related Letter of Transmittal, which are being sent to holders of Notes.
The table set forth below lists the consideration applicable to each series of Notes that are the subject of the Tender Offers.
Holders of Notes must validly tender and not validly withdraw their Notes on or before 5:00 p.m., New York City time, on February 11, 2011, unless extended (such date and time, as the same may be extended, the "Early Tender Date") in order to be eligible to receive the Total Tender Offer Consideration. Holders of Notes who validly tender their Notes after the Early Tender Date and on or before the Expiration Date (as defined below) will be eligible to receive only the Late Tender Offer Consideration, which is equal to the Total Tender Offer Consideration minus the Early Tender Premium. In addition to the applicable tender offer consideration, holders whose Notes are accepted for purchase in a Tender Offer will receive accrued and unpaid interest up to, but not including, the applicable settlement date. K. Hovnanian may elect to accept for purchase prior to the expiration of each Tender Offer all Notes validly tendered on or before the Early Tender Date. It is anticipated that the settlement date for Notes validly tendered on or before the Early Tender Date will be February 14, 2011, if K. Hovnanian elects to accept such Notes for purchase prior to the expiration of the Tender Offers. It also is anticipated that the settlement date for Notes validly tendered after the Early Tender Date and on or before the Expiration Date (as well as for Notes validly tendered on or before the Early Tender Date if K. Hovnanian does not elect to accept such Notes for purchase prior to the expiration of the Tender Offers) will be March 1, 2011.
The Tender Offers will expire at 12:00 midnight, New York City time, on February 28, 2011, unless extended (such date and time, as the same may be extended, the "Expiration Date"). As set forth in the Offer to Purchase, validly tendered Notes may be validly withdrawn at any time on or before 5:00 p.m., New York City time, on February 11, 2011, unless extended. The consummation of each Tender Offer 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 .
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 Tenders 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