Hovnanian prices $900M in new senior notes

Rhea-AI Filing Summary

Hovnanian Enterprises, Inc. announced that its wholly owned subsidiary K. Hovnanian Enterprises, Inc. priced $450.0 million aggregate principal amount of 8.000% Senior Notes due 2031 and $450.0 million aggregate principal amount of 8.375% Senior Notes due 2033, for a total of $900.0 million in new debt. The offering is expected to close on or about September 25, 2025, subject to customary closing conditions.

K. Hovnanian intends to use the net proceeds to redeem all outstanding 8.0% Senior Secured 1.125 Lien Notes due 2028 at 104.000% of principal, redeem all outstanding 11.75% Senior Secured 1.25 Lien Notes due 2029 at 100.000% of principal plus a make-whole premium, repay in full all loans under its Senior Secured 1.75 Lien Term Loan Facility due 2028 at par, and pay related fees and expenses. The new notes are being offered in a private offering to qualified institutional buyers under Rule 144A and to certain offshore investors under Regulation S and are not registered under the Securities Act.

Positive

• Large-scale debt refinancing with extended maturities: K. Hovnanian is issuing $900.0 million of senior notes due 2031 and 2033 to redeem existing secured notes and repay a term loan facility in full, simplifying and terming out a substantial portion of its debt profile.

Negative

• None.

Insights

Corporate credit and capital-structure analyst

Hovnanian is refinancing secured debt and a term loan with $900M of longer-dated senior notes.

Hovnanian Enterprises, through K. Hovnanian, is issuing $450.0 million of 8.000% Senior Notes due 2031 and $450.0 million of 8.375% Senior Notes due 2033. This shifts a large portion of its obligations into two longer-maturity instruments.

The company plans to redeem its 8.0% Senior Secured 1.125 Lien Notes due 2028 at 104.000% of principal and 11.75% Senior Secured 1.25 Lien Notes due 2029 at 100.000% plus a make-whole premium, and to repay in full its Senior Secured 1.75 Lien Term Loan Facility due 2028 at par, including accrued interest and fees.

This transaction replaces multiple secured instruments and a term loan with senior notes that mature in 2031 and 2033. Actual effects on leverage, interest expense, and collateral structure will depend on the detailed terms of the new notes and the extinguished facilities as described in related offering documents and future company disclosures.

8-K Event Classification

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

What debt offering did Hovnanian Enterprises (HOV) announce?

Hovnanian announced that subsidiary K. Hovnanian priced $450.0 million of 8.000% Senior Notes due 2031 and $450.0 million of 8.375% Senior Notes due 2033, creating a total of $900.0 million in new senior notes to refinance existing obligations.

How will Hovnanian (HOV) use the proceeds from the new senior notes?

K. Hovnanian intends to use net proceeds to redeem all outstanding 8.0% Senior Secured 1.125 Lien Notes due 2028 and 11.75% Senior Secured 1.25 Lien Notes due 2029, fully repay its Senior Secured 1.75 Lien Term Loan Facility due 2028, and pay related fees and expenses.

What are the interest rates and maturities of Hovnanian’s new senior notes?

The new issuance includes 8.000% Senior Notes due 2031 and 8.375% Senior Notes due 2033, each in $450.0 million aggregate principal amount. These fixed-rate notes extend a significant portion of K. Hovnanian’s debt maturities into the next decade.

Are Hovnanian’s new senior notes registered under the Securities Act?

No. The notes have not been registered under the Securities Act or state laws. They are being offered only to qualified institutional buyers under Rule 144A and to certain offshore investors under Regulation S, relying on applicable registration exemptions.

Which existing Hovnanian debts are being redeemed or repaid with this transaction?

The company plans to redeem all 8.0% Senior Secured 1.125 Lien Notes due 2028 at 104.000% of principal, all 11.75% Senior Secured 1.25 Lien Notes due 2029 at 100.000% plus a make-whole premium, and repay in full the Senior Secured 1.75 Lien Term Loan Facility due 2028.

When is the closing of Hovnanian’s new senior notes offering expected?

The offering is expected to close on or about September 25, 2025, subject to customary closing conditions. Final timing will depend on satisfaction of those conditions and completion of standard closing processes for institutional private offerings.

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Accepted by SEC EDGAR 09/11/2025 - 04:28 PM Learn about SEC filing dates

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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 11, 2025

HOVNANIAN ENTERPRISES, INC.
(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation) 1-8551 (Commission File Number) 22-1851059 (IRS Employer Identification No.)

90 Matawan Road, Fifth Floor

Matawan, New Jersey 07747
(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))

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock $0.01 par value per share	HOV	New York Stock Exchange
Preferred Stock Purchase Rights (1)	N/A	New York Stock Exchange
Depositary Shares each representing 1/1,000th of a share of 7.625% Series A Preferred Stock	HOVNP	The Nasdaq Stock Market LLC

(1) Each share of Class A Common Stock includes an associated Preferred Stock Purchase Right. Each Preferred Stock Purchase Right initially represents the right, if such Preferred Stock Purchase Right becomes exercisable, to purchase from the Company one ten-thousandth of a share of its Series B Junior Preferred Stock for each share of Common Stock. The Preferred Stock Purchase Rights currently cannot trade separately from the underlying Common Stock.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

On September 11, 2025, Hovnanian Enterprises, Inc, (the “Company”) issued a press release announcing the pricing of $450.0 million aggregate principal amount of 8.000% Senior Notes due 2031 (the “2031 Notes”) and $450.0 million aggregate principal amount of 8.375% Senior Notes due 2033 (the “2033 Notes” and together with the 2031 Notes, the “Notes”) to be issued by K. Hovnanian Enterprises, Inc. (“K. Hovnanian”), a wholly-owned subsidiary of the Company. The offering is expected to close on or about September 25, 2025, subject to customary closing conditions.

K. Hovnanian intends to use the net proceeds from the offering to (i) fund the redemption of the entire outstanding principal amount of its 8.0% Senior Secured 1.125 Lien Notes due 2028 (the “1.125 Lien Notes”) at a redemption price equal to 104.000% of the principal amount thereof and the entire outstanding principal amount of its 11.75% Senior Secured 1.25 Lien Notes due 2029 (the “1.25 Lien Notes” and together with the 1.125 Lien Notes, the “Existing Secured Notes”) at a redemption price equal to 100.000% of the principal amount thereof plus the applicable “make-whole” premium, in each case, plus accrued and unpaid interest to, but excluding, the redemption date, (ii) repay in full all outstanding loans under its Senior Secured 1.75 Lien Term Loan Facility due 2028 (the “Existing Term Loan Facility”) at par, plus accrued and unpaid interest to, but excluding, the prepayment date and (iii) pay all fees and expenses related thereto and the Notes offering. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities or blue sky laws. Accordingly, the Notes are being offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration provided by Rule 144A under the Securities Act, and to certain persons in offshore transactions in reliance on Regulation S under the Securities Act. This Form 8-K does not constitute an offer to sell or the solicitation of an offer to buy Notes in any jurisdiction in which such an offer or sale would be unlawful. Additionally, this Form 8-K does not constitute a notice of redemption of the Existing Secured Notes. 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press Release, dated September 11, 2025.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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/ Brad G. O’Connor
		Name: Brad G. O’Connor Title: Chief Financial Officer

Date: September 11, 2025