Hovnanian to sell $100 million perpetual preferreds

By Paul A. Harris

St. Louis, June 27 - Hovnanian Enterprises, Inc. plans to price a $100 million offering of series A perpetual preferred stock (Ba3/B) later this week, according to a syndicate source.

The company is offering 4 million shares with a liquidation price of $25.00 per share.

Also included in the deal is a $15 million greenshoe.

Credit Suisse First Boston, UBS Investment Bank and Wachovia Securities are joint bookrunners while JMP Securities is the joint lead manager.

Citigroup, RBC Capital Markets, BB&T Capital Markets, JP Morgan, KeyBanc Capital Markets, Piper Jaffray, BNP Paribas, Calyon Securities, Comerica Securities and RBS Greenwich Capital are co-managers.

The notes will become callable in five years, and proceeds will be used to repay bank debt.

The issuer is a Red Bank, N.J.-based homebuilder.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.