RED BANK, N.J., June 22 /PRNewswire-FirstCall/ -- Hovnanian Enterprises, Inc. (NYSE: HOV) (the 'Company') announced that its wholly owned subsidiary, K. Hovnanian Enterprises, Inc. ('K. Hovnanian'), has commenced cash tender offers for (i) any and all of its outstanding $28,870,000 6% Senior Subordinated Notes due 2010 (the '2010 Notes') (the '2010 Tender Offer') at a fixed purchase price described below, (ii) the maximum aggregate principal amount of its 8% Senior Notes due 2012 ($88,174,000 outstanding), 8-7/8% Senior Subordinated Notes due 2012 ($70,935,000 outstanding) and 7-3/4% Senior Subordinated Notes due 2013 ($96,225,000 outstanding) (collectively, the '2012-2013 Notes') that it can purchase for $40.0 million (the '2012-2013 Tender Offer') at a purchase price determined in accordance with the procedures of a modified 'Dutch Auction' as described below and (iii) the maximum aggregate principal amount of its 6-1/2% Senior Notes due 2014 ($144,149,000 outstanding), 6-3/8% Senior Notes due 2014 ($115,313,000 outstanding), 6-1/4% Senior Notes due 2015 ($135,403,000 outstanding), 6-1/4% Senior Notes due 2016 ($182,405,000 outstanding), 7-1/2% Senior Notes due 2016 ($196,652,000 outstanding) and 8-5/8% Senior Notes due 2017 ($207,178,000 outstanding) (collectively, the '2014-2017 Notes,' and together with the 2012-2013 Notes, the 'Dutch Notes,' and together with the 2010 Notes, the 'Notes') that it can purchase for $20.0 million (the '2014-2017 Tender Offer,' and together with the 2012-2013 Tender Offer, the 'Dutch Tender Offers,' and together with the 2010 Tender Offer, the 'Tender Offers') at a purchase price determined in accordance with the procedures of a modified 'Dutch Auction' as described below.
Each Tender Offer will expire at 8:00 a.m., New York City time, on July 20, 2009, unless extended or earlier terminated (with respect to each Tender Offer, the 'Expiration Date'). Holders of Notes must validly tender and not withdraw their Notes on or prior to 5:00 p.m., New York City time, on July 2, 2009, unless extended (with respect to each Tender Offer, the 'Early Participation Date'), in order to receive the Total Consideration (as described below) for their Notes. The Total Consideration includes an early participation payment of $30.00 for each $1,000 principal amount of Notes validly tendered on or before the Early Participation Date and accepted in the applicable Tender Offer (with respect to each Tender Offer, the 'Early Participation Payment'). Holders validly tendering their Notes after the Early Participation Date and on or prior to the Expiration Date will only be eligible to receive the Tender Offer Consideration for such Notes, which is equal to the Total Consideration for such Notes less the Early Participation Payment. Notes tendered may be withdrawn at any time prior to 5:00 p.m., New York City time, on July 2, 2009, unless extended (such date and time, the 'Withdrawal Date') but not thereafter.
2010 Tender Offer
Holders who validly tender and do not validly withdraw their 2010 Notes prior to the Early Participation Date, will be entitled to receive the Total Consideration of $985, payable in cash, for each $1,000 principal amount of 2010 Notes accepted for purchase, which amount includes the Early Participation Payment.
