Hovnanian Enterprises, Inc. · NYSE:HOV
Hovnanian Enterprises — Debt Investor Presentation (December 2017)
13 slides from Hovnanian Enterprises's debt investor presentation, Dec 29, 2017
Slide 1: Refinancing Transaction
Slide 2: Forward-Looking Statements Note
Note: All statements in this presentation that are not historical facts should be considered as “Forward-Looking Statements” within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and
Slide 3: Hovnanian Announces Refinancing Transactions
lovnanian Enterprises: Inc. Hovnanian Announces Refinancing Transactions These slides provide a summary of certain significant terms of the refinancings and their effects. The slides do not purport to describe all relevant terms and conditions. Readers should review the transactions documents in the
Slide 4: Refinance 7.0% Senior Notes with 5% unsecured term loan
ey Summary of Refinancing Transactions Company will refinance the 7.0% Senior Notes in their entirety, with a 5% unsecured term loan maturing in 2027 from GSO.
Slide 5: Refinance 8.0% Senior Notes
Cama Summary of Refinancing Transactions Point 2 — Refinance 8.0% Senior Notes © The Company has launched an exchange offer today (the “Exchange”) for up to $185.0 million of its 8.0% Senior Notes for the following consideration: - $26.5 million of cash — Two unsecured notes: * Upto $99.9 million of
Slide 6: Consent solicitation for secured note holders
Cama Summary of Refinancing Transactions o Asaconditionto the exchange, the Companyis soliciting consents from our 10% and 10.5% secured note holders to allow us to use cash for repayment or open market purchases of the unsecured notes and refinancings thereof
Slide 7: Exchange Transaction Mechanics
Afoynanian Exchange Transaction Mechanics Exchange Details oO. The Exchange will provide participants with consideration that includes a pro rata share of $26.5 million of cash, 13.5% Unsecured Notes, and 5.0% Unsecured Notes. Participation Requirements: o Minimum participation: $140.0 million o Max
Slide 8: Illustrative Exchange Economics
Illustrative Exchange Economics (S in actual) Illustrative Participation Amount $185,000,000 Cash Tender A Debt Consideration Exchange Participation 185,000,000 Debt for Exchange Ratio $159,000,000 13.5% Unsecured Notes Exchange Ratio 0.62827x B 5.0 % Unsecured Notes Exchange Ratio 0.62500x Cc D Tot
Slide 9: Additional GSO Capital
Cama Summary of Refinancing Transactions Point 4 — Additional GSO Capital In addition to the $132.5 million5% unsecured term loan and the $80 million delayed draw on that facility, GSO has also committed to providing the additional sources of capital: o $125.0 million Senior Secured Revolver, to be
Slide 10: Key Dates & Timeline
Cama Summary of Refinancing Transactions Key Dates & Timeline December 28, 2017: Exchange and consent solicitation launch January 12, 2018: Consent solicitation expiration January 29, 2018: Exchange expiration Early February 2018: Exchange closing and closing of 7.0% Senior Notes refinancing Mid 201
Slide 11: Pre and Pro Forma Maturity Profile
Ov natal Pre and Pro Forma Maturity Profile As of October 31, 2017 ($ inmillions) 3 G4 QI Q2 Q3 4 Ai 2 G3 A4 Al Q2 G3 A4.QI Q2 O3 G4 Ql G2 G3 04 QIa2 G3 Qs Ql QZazIq@aigaaralqaaad di '17 ‘17 '18 '18 '18 '18 '19 19 '19 '19 '20 '20 '20 '20 '21 '21 ‘21 '24 '22 '22 '22 '22 '23 '23 '23 '23 '24 '24 '24 '2
Slide 12: Pre and Pro Forma Maturity Profile
oynanian Pre and Pro Forma Maturity Profile Enterpris Pro Forma for Refinancing of 7% and 8% Senior Unsecured Notes ($ in millions) 3 G4 Ql G2 03 O4 QI a2 G3 a4 Al G2 03 a4 QI a2 a3 04 al a2 a3 '17 ‘17 '18 '18 '18 '18'19 '19 '19 '19 '20 '20 '20 '20'21 ‘21 '21 '21 '22 '22 '22 '29 '23 '23 '23 '23 '24
Slide 13: Hovnanian Enterprises, Inc.
ovnanian Enterprises; Inc.
Hovnanian Enterprises — Debt Investor Presentation (December 2017) on 6ix