This sale is part of a larger land banking agreement between
Hovnanian and GSO, whereby GSO provides up to $125m in funding to acquire a
portfolio of finished lots and option the acquired properties back to Hovnanian
on a quarterly basis. To date, the partnership has acquired six land parcels
totaling 620 lots.
GSO also increased their holdings in Hovnanian by exchanging
$13.4m outstanding debt in three notes of $3m 7.5% Senior Unsecured Note due
2016, $9.1m 8.625% Senior Notes due 2017 and $1.3m in Senior Subordinated note
for 3,398,291 shares of Hovnanian’s Class A Common Stock valued at $2 per share.
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By:
Paul Dionne
Research Analyst
pdionne@vizzda.com
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