As filed with the Securities and Exchange Commission on September 19, 2008
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-4
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
| K. HOVNANIAN ENTERPRISES, INC. | HOVNANIAN ENTERPRISES, INC. | |
| (Exact Name of Registrant as Specified in Its Charter) | ||
California |
Delaware |
|
| (State or Other Jurisdiction of Incorporation or Organization) | ||
1520 |
1531 |
|
| (Primary Standard Industrial Classification Code Number) | ||
22-2423583 |
22-1851059 |
|
| (I.R.S. Employer Identification Number) | ||
110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 (732) 747-7800 |
110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 (732) 747-7800 |
|
| (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices) | ||
SEE TABLE OF ADDITIONAL REGISTRANTS
J. Larry Sorsby
Hovnanian Enterprises, Inc.
110 West Front Street
P.O. Box 500
Red Bank, New Jersey 07701
(732) 747-7800
(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)
Copies to:
Vincent Pagano Jr., Esq.
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017-3954
(212) 455-2000
Approximate date of commencement of proposed sale to the public:
As soon as practicable after the effective date of this Registration Statement.
If the securities being registered on this form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. o
If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o
If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o |
CALCULATION OF REGISTRATION FEE
| Title Of Each Class Of Securities To Be Registered |
Amount To Be Registered |
Proposed Maximum Offering Price Per Unit |
Proposed Maximum Aggregate Offering Price |
Amount Of Registration Fee |
||||
|---|---|---|---|---|---|---|---|---|
111/2% Senior Secured Notes due 2013 |
$600,000,000 | 99.087%(1) | $594,524,000(1) | $23,365(2) | ||||
Guarantees of 111/2% Senior Secured Notes due 2013 |
N/A | N/A | N/A | None(3) | ||||
Total |
$600,000,000 | 99.087%(1) | $594,524,000(1) | $23,365(2) | ||||
The Registrants hereby amend this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrants shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
TABLE OF ADDITIONAL REGISTRANTS
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
Alford, L.L.C. |
VA | 20-1532156 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
Auddie Enterprises, L.L.C. |
NJ |
26-1956909 |
110 West Front Street |
|||
Builder Services NJ, L.L.C. |
NJ |
20-1131408 |
110 West Front Street |
|||
Builder Services NY, L.L.C. |
NY |
20-5676716 |
110 West Front Street |
|||
Builder Services PA, L.L.C. |
PA |
20-5425686 |
110 West Front Street |
|||
Dulles Coppermine, L.L.C. |
VA |
31-1820770 |
110 West Front Street |
|||
Eastern Title Agency, Inc. |
NJ |
22-2822803 |
110 West Front Street |
|||
F & W Mechanical Services, L.L.C. |
NJ |
20-4186885 |
110 West Front Street |
|||
Founders Title Agency of Maryland, L.L.C. |
MD |
20-1480338 |
110 West Front Street |
|||
Founders Title Agency, Inc. |
VA |
22-3293533 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
Governor's Abstract Co., Inc. |
PA | 22-3278556 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
Greenway Farms Utility Associates, L.L.C. |
MD |
20-3749580 |
110 West Front Street |
|||
Homebuyers Financial Services, L.L.C. |
MD |
20-3529161 |
110 West Front Street |
|||
Hovnanian Developments of Florida, Inc. |
FL |
22-2416624 |
110 West Front Street |
|||
Hovnanian Land Investment Group of Georgia, L.L.C. |
GA |
20-3286439 |
110 West Front Street |
|||
Hovnanian Land Investment Group of Pennsylvania, L.L.C. |
PA |
20-4641720 |
110 West Front Street |
|||
Hudson Pointe Joint Development, L.L.C. |
DE |
20-2695750 |
110 West Front Street |
|||
K. Hov IP, Inc. |
CA |
95-4892009 |
110 West Front Street |
|||
K. Hov International, Inc. |
NJ |
22-3188610 |
110 West Front Street |
|||
K. Hov IP, II, Inc. |
CA |
57-1135061 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Acquisitions, Inc. |
NJ | 22-3406671 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at 3 Chapman, L.L.C. |
CA |
20-4359772 |
110 West Front Street |
|||
K. Hovnanian at Aberdeen Urban Renewal, L.L.C. |
NJ |
20-4397868 |
110 West Front Street |
|||
K. Hovnanian at Allenberry, L.L.C. |
PA |
20-5295827 |
110 West Front Street |
|||
K. Hovnanian at Allendale, L.L.C. |
NJ |
26-0581709 |
110 West Front Street |
|||
K Hovnanian at Barnegat III, L.L.C. |
NJ |
20-4135622 |
110 West Front Street |
|||
K. Hovnanian at Bernards IV, Inc. |
NJ |
22-3292171 |
110 West Front Street |
|||
K. Hovnanian at Branchburg III, Inc. |
NJ |
22-2961099 |
110 West Front Street |
|||
K. Hovnanian at Bridgeport, Inc. |
CA |
22-3547807 |
110 West Front Street |
|||
K. Hovnanian at Bridgewater VI, Inc. |
NJ |
22-3243298 |
110 West Front Street |
|||
K. Hovnanian at Broad and Walnut, L.L.C. |
PA |
20-3477133 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Burlington III, Inc. |
NJ | 22-3412130 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Burlington, Inc. |
NJ |
22-2949611 |
110 West Front Street |
|||
K. Hovnanian at Calabria, Inc. |
CA |
22-3324654 |
110 West Front Street |
|||
K. Hovnanian at Cameron Chase, Inc. |
VA |
22-3459993 |
110 West Front Street |
|||
K. Hovnanian at Camp Hill, L.L.C. |
PA |
20-4215810 |
110 West Front Street |
|||
K. Hovnanian at Carmel Del Mar, Inc. |
CA |
22-3320550 |
110 West Front Street |
|||
K. Hovnanian at Castile, Inc. |
CA |
22-3356308 |
110 West Front Street |
|||
K. Hovnanian at Chaparral, Inc. |
CA |
22-3565730 |
110 West Front Street |
|||
K. Hovnanian at Chesterfield II, L.L.C. |
NJ |
20-4135587 |
110 West Front Street |
|||
K. Hovnanian at Cielo, L.L.C. |
CA |
20-3393453 |
110 West Front Street |
|||
K. Hovnanian at Clarkstown, Inc. |
NY |
22-2618176 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Coastline, L.L.C. |
CA | 20-4751032 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Crestline, Inc. |
CA |
22-3493450 |
110 West Front Street |
|||
K. Hovnanian at Dominguez Hills, Inc. |
CA |
22-3602177 |
110 West Front Street |
|||
K. Hovnanian at East Brandywine, L.L.C. |
PA |
20-8353499 |
110 West Front Street |
|||
K. Hovnanian at East Whiteland I, Inc. |
PA |
22-3483220 |
110 West Front Street |
|||
K. Hovnanian at Elk Township, L.L.C. |
NJ |
20-5199963 |
110 West Front Street |
|||
K. Hovnanian at Evergreen, L.L.C. |
CA |
20-1618392 |
110 West Front Street |
|||
K. Hovnanian at Ewing, L.L.C. |
NJ |
20-8327131 |
110 West Front Street |
|||
K. Hovnanian at Fifth Avenue, L.L.C. |
NJ |
20-4594377 |
110 West Front Street |
|||
K. Hovnanian at Forks Twp. I, L.L.C. |
PA |
20-4202483 |
110 West Front Street |
|||
K. Hovnanian at Freehold Township I, Inc. |
NJ |
22-2459186 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Galloway, L.L.C. |
NJ | 26-0395034 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Hackettstown, Inc. |
NJ |
22-2765936 |
110 West Front Street |
|||
K. Hovnanian at Hazlet, L.L.C. |
NJ |
20-4568967 |
110 West Front Street |
|||
K. Hovnanian at Hershey's Mill, Inc. |
PA |
22-3445102 |
110 West Front Street |
|||
K. Hovnanian at Highland Vineyards, Inc. |
CA |
22-3309241 |
110 West Front Street |
|||
K. Hovnanian at Hilltop, L.L.C. |
NJ |
20-3476959 |
110 West Front Street |
|||
K. Hovnanian at Hopewell IV, Inc. |
NJ |
22-3345622 |
110 West Front Street |
|||
K. Hovnanian at Hopewell VI, Inc. |
NJ |
22-3465709 |
110 West Front Street |
|||
K. Hovnanian at Howell Township, Inc. |
NJ |
22-2859308 |
110 West Front Street |
|||
K. Hovnanian at Hudson Pointe, L.L.C. |
NJ |
20-2695809 |
110 West Front Street |
|||
K. Hovnanian at Keyport, L.L.C. |
NJ |
20-4918777 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Kings Grant I, Inc. |
NJ | 22-2601064 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at La Costa Greens, L.L.C. |
CA |
20-3920917 |
110 West Front Street |
|||
K. Hovnanian at La Terraza, Inc. |
CA |
22-3303807 |
110 West Front Street |
|||
K. Hovnanian at Lake Hills, L.L.C. |
CA |
20-3450108 |
110 West Front Street |
|||
K. Hovnanian at Lake Rancho Viejo, LLC |
CA |
20-1337056 |
110 West Front Street |
|||
K. Hovnanian at Lakewood, Inc. |
NJ |
22-2618178 |
110 West Front Street |
|||
K. Hovnanian at Little Egg Harbor III, L.L.C. |
NJ |
20-4861624 |
110 West Front Street |
|||
K. Hovnanian at Lower Macungie Township I, L.L.C. |
PA |
51-0427582 |
110 West Front Street |
|||
K Hovnanian at Lower Moreland III, L.L.C. |
PA |
20-4863743 |
110 West Front Street |
|||
K. Hovnanian at Lower Saucon, Inc. |
PA |
22-2961090 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Macungie, L.L.C. |
PA | 20-4863710 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Mahwah II, Inc. |
NJ |
22-2859315 |
110 West Front Street |
|||
K. Hovnanian at Mahwah VI, Inc. |
NJ |
22-3188612 |
110 West Front Street |
|||
K. Hovnanian at Mahwah VII, Inc. |
NJ |
22-2592139 |
110 West Front Street |
|||
K. Hovnanian at Manalapan, Inc. |
NJ |
22-2442998 |
110 West Front Street |
|||
K. Hovnanian at Maple Avenue, L.L.C. |
NJ |
20-4863855 |
110 West Front Street |
|||
K. Hovnanian at Marlboro II, Inc. |
NJ |
22-2748659 |
110 West Front Street |
|||
K. Hovnanian at Marlboro Township III, Inc. |
NJ |
22-2847875 |
110 West Front Street |
|||
K. Hovnanian at Marlboro Township IV, Inc. |
NJ |
22-3301196 |
110 West Front Street |
|||
K. Hovnanian at Matsu, L.L.C. |
CA |
20-4135542 |
110 West Front Street |
|||
K. Hovnanian at Middle Township II, L.L.C. |
NJ |
20-3832384 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Mockingbird Canyon, L.L.C. |
CA | 20-4106816 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Monroe II, Inc. |
NY |
22-2718071 |
110 West Front Street |
|||
K. Hovnanian at Monroe NJ, L.L.C. |
NJ |
20-3512199 |
110 West Front Street |
|||
K. Hovnanian at Montgomery I, Inc. |
PA |
22-3165601 |
110 West Front Street |
|||
K. Hovnanian at New Brunswick Urban Renewal, L.L.C. |
NJ |
20-4053097 |
110 West Front Street |
|||
K. Hovnanian at North Caldwell III, L.L.C. |
NJ |
20-4863775 |
110 West Front Street |
|||
K. Hovnanian at Northern Westchester, Inc. |
NY |
22-2814372 |
110 West Front Street |
|||
K. Hovnanian at Northlake, Inc. |
CA |
22-3336696 |
110 West Front Street |
|||
K. Hovnanian at Ocean Township, Inc. |
NJ |
22-3094742 |
110 West Front Street |
|||
K. Hovnanian at Ocean Walk, Inc. |
CA |
22-3565732 |
110 West Front Street |
|||
K. Hovnanian at Oceanport, L.L.C. |
NJ |
20-5811042 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Orange Heights, L.L.C. |
CA | 20-4996061 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Peapack-Gladstone, L.L.C. |
NJ |
20-5298728 |
110 West Front Street |
|||
K. Hovnanian at Perkiomen I, Inc. |
PA |
22-3094743 |
110 West Front Street |
|||
K. Hovnanian at Perkiomen II, Inc. |
PA |
22-3301197 |
110 West Front Street |
|||
K. Hovnanian at Philadelphia II, L.L.C. |
PA |
20-1706785 |
110 West Front Street |
|||
K. Hovnanian at Piazza D'Oro, L.L.C. |
CA |
11-3760903 |
110 West Front Street |
|||
K. Hovnanian at Port Imperial Urban Renewal IV, L.L.C. |
NJ |
20-2293457 |
110 West Front Street |
|||
K. Hovnanian at Port Imperial Urban Renewal V, L.L.C. |
NJ |
20-2293478 |
110 West Front Street |
|||
K. Hovnanian at Port Imperial Urban Renewal VI, L.L.C. |
NJ |
20-2909190 |
110 West Front Street |
|||
K. Hovnanian at Port Imperial Urban Renewal VII, L.L.C. |
NJ |
20-2909213 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Port Imperial Urban Renewal VIII, L.L.C. |
NJ | 20-2909227 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Princeton Landing, L.L.C. |
NJ |
20-4678083 |
110 West Front Street |
|||
K. Hovnanian at Princeton NJ, L.L.C. |
NJ |
20-3728840 |
110 West Front Street |
|||
K. Hovnanian at Rancho Cristianitos, Inc. |
CA |
22-3369102 |
110 West Front Street |
|||
K. Hovnanian at Reservoir Ridge, Inc. |
NJ |
22-2510587 |
110 West Front Street |
|||
K. Hovnanian at Ridgemont, L.L.C. |
NJ |
20-3375106 |
110 West Front Street |
|||
K. Hovnanian at Ridgestone, L.L.C. |
MN |
20-3563233 |
110 West Front Street |
|||
K. Hovnanian at Sage, L.L.C. |
CA |
20-3230547 |
110 West Front Street |
|||
K. Hovnanian at San Sevaine, Inc. |
CA |
22-3493454 |
110 West Front Street |
|||
K. Hovnanian at Saratoga, Inc. |
CA |
22-3547806 |
110 West Front Street |
|||
K. Hovnanian at Sawmill, Inc. |
PA |
22-3602924 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Scotch Plains II, Inc. |
NJ | 22-3464496 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Scotch Plains, L.L.C. |
NJ |
22-1149329 |
110 West Front Street |
|||
K. Hovnanian at Silver Spring, L.L.C. |
PA |
20-3230502 |
110 West Front Street |
|||
K. Hovnanian at Skye Isle, Inc. |
CA |
31-1820095 |
110 West Front Street |
|||
K. Hovnanian at Smithville, Inc. |
NJ |
22-1732674 |
110 West Front Street |
|||
K. Hovnanian at South Brunswick V, Inc. |
NJ |
22-2937570 |
110 West Front Street |
|||
K. Hovnanian at Sparta, L.L.C. |
NJ |
20-4326573 |
110 West Front Street |
|||
K. Hovnanian at Stone Canyon, Inc. |
CA |
22-3512641 |
110 West Front Street |
|||
K. Hovnanian at Stony Point, Inc. |
NY |
22-2758195 |
110 West Front Street |
|||
K. Hovnanian at Sycamore, Inc. |
CA |
22-3493456 |
110 West Front Street |
|||
K. Hovnanian at Tannery Hill, Inc. |
NJ |
22-3396608 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at The Bluff, Inc. |
NJ | 22-1841019 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at The Monarch, L.L.C. |
NJ |
20-3215837 |
110 West Front Street |
|||
K. Hovnanian at Thornbury, Inc. |
PA |
22-3462983 |
110 West Front Street |
|||
K. Hovnanian at Tierrasanta, Inc. |
CA |
22-3351875 |
110 West Front Street |
|||
K. Hovnanian at Trenton Urban Renewal, L.L.C. |
NJ |
20-4908853 |
110 West Front Street |
|||
K. Hovnanian at Trenton, L.L.C. |
NJ |
20-3728778 |
110 West Front Street |
|||
K. Hovnanian at Trovata, Inc. |
CA |
22-3369099 |
110 West Front Street |
|||
K. Hovnanian at Tuxedo, Inc. |
NJ |
22-3516266 |
110 West Front Street |
|||
K. Hovnanian at Union Township I, Inc. |
NJ |
22-3027952 |
110 West Front Street |
|||
K. Hovnanian at Upper Freehold Township I, Inc. |
NJ |
22-3415873 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Upper Makefield I, Inc. |
PA | 22-3302321 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Vail Ranch, Inc. |
CA |
22-3320537 |
110 West Front Street |
|||
K. Hovnanian at Verona Urban Renewal, L.L.C. |
NJ |
20-4359783 |
110 West Front Street |
|||
K. Hovnanian at Wall Township VI, Inc. |
NJ |
22-2859303 |
110 West Front Street |
|||
K. Hovnanian at Wall Township VIII, Inc. |
NJ |
22-3434643 |
110 West Front Street |
|||
K. Hovnanian at Washingtonville, Inc. |
NY |
22-2717887 |
110 West Front Street |
|||
K. Hovnanian at Wayne III, Inc. |
NJ |
22-2607669 |
110 West Front Street |
|||
K. Hovnanian at Wayne V, Inc. |
NJ |
22-2790299 |
110 West Front Street |
|||
K. Hovnanian at Wildrose, Inc. |
CA |
22-3312525 |
110 West Front Street |
|||
K. Hovnanian at Wildwood Bayside, L.L.C. |
NJ |
20-4385082 |
110 West Front Street |
|||
K. Hovnanian Chesterfield Investment, L.L.C. |
NJ |
20-1683566 |
110 West Front Street |
|||
K. Hovnanian Classics CIP, L.L.C. |
NJ |
20-3684969 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Classics, L.L.C. |
NJ | 20-3761401 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Communities, Inc. |
CA |
95-4892007 |
110 West Front Street |
|||
K. Hovnanian Companies Northeast, Inc. |
NJ |
22-2445216 |
110 West Front Street |
|||
K. Hovnanian Companies of California, Inc. |
CA |
22-3301757 |
110 West Front Street |
|||
K. Hovnanian Companies of Maryland, Inc. |
MD |
22-3331050 |
110 West Front Street |
|||
K. Hovnanian Companies of New York, Inc. |
NY |
22-2618171 |
110 West Front Street |
|||
K. Hovnanian Companies of Pennsylvania, Inc. |
PA |
22-2390174 |
110 West Front Street |
|||
K. Hovnanian Companies of Southern California, Inc. |
CA |
22-3493449 |
110 West Front Street |
|||
K. Hovnanian Companies of Virginia, Inc. |
VA |
22-3169584 |
110 West Front Street |
|||
K. Hovnanian Connecticut Acquisitions, L.L.C. |
CT |
20-3921070 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Construction II, Inc. |
NJ | 22-2246316 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Construction III, Inc. |
NJ |
22-1945444 |
110 West Front Street |
|||
K. Hovnanian Construction Management, Inc. |
NJ |
22-3406668 |
110 West Front Street |
|||
K. Hovnanian Craftbuilt Homes of South Carolina, L.L.C. |
SC |
20-4467887 |
110 West Front Street |
|||
K. Hovnanian Delaware Acquisitions, L.L.C. |
DE |
20-4823251 |
110 West Front Street |
|||
K. Hovnanian Developments of Arizona, Inc. |
AZ |
31-1825442 |
110 West Front Street |
|||
K. Hovnanian Developments of California, Inc. |
CA |
22-3303806 |
110 West Front Street |
|||
K. Hovnanian Developments of Connecticut, Inc. |
CT |
20-3920999 |
110 West Front Street |
|||
K. Hovnanian Developments of D.C., Inc. |
DC |
20-2377106 |
110 West Front Street |
|||
K. Hovnanian Developments of Delaware, Inc. |
DE |
20-1528466 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Developments of Georgia, Inc. |
GA | 20-3286085 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Developments of Illinois, Inc. |
IL |
20-2421053 |
110 West Front Street |
|||
K. Hovnanian Developments of Indiana, Inc. |
IN |
20-3278908 |
110 West Front Street |
|||
K. Hovnanian Developments of Kentucky, Inc. |
KY |
20-5156963 |
110 West Front Street |
|||
K. Hovnanian Developments of Maryland, Inc. |
MD |
22-3331045 |
110 West Front Street |
|||
K. Hovnanian Developments of Michigan, Inc. |
MI |
31-1826348 |
110 West Front Street |
|||
K. Hovnanian Developments of Minnesota, Inc. |
MN |
20-1073868 |
110 West Front Street |
|||
K. Hovnanian Developments of New Jersey II, Inc. |
CA |
59-3762294 |
110 West Front Street |
|||
K. Hovnanian Developments of New Jersey, Inc. |
CA |
22-2664563 |
110 West Front Street |
|||
K. Hovnanian Developments of New York, Inc. |
NY |
22-2626492 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Developments of North Carolina, Inc. |
NC | 22-2765939 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Developments of Ohio, Inc. |
OH |
32-0069375 |
110 West Front Street |
|||
K. Hovnanian Developments of Pennsylvania, Inc. |
PA |
22-1097670 |
110 West Front Street |
|||
K. Hovnanian Developments of South Carolina, Inc. |
SC |
58-2659968 |
110 West Front Street |
|||
K. Hovnanian Developments of Texas, Inc. |
TX |
22-3685786 |
110 West Front Street |
|||
K. Hovnanian Developments of Virginia, Inc. |
VA |
22-3188615 |
110 West Front Street |
|||
K. Hovnanian Developments of West Virginia, Inc. |
WV |
31-1826831 |
110 West Front Street |
|||
K. Hovnanian Florida Realty, L.L.C. |
FL |
26-0509482 |
110 West Front Street |
|||
K. Hovnanian Forecast Homes Northern, Inc. |
CA |
20-4996073 |
110 West Front Street |
|||
K. Hovnanian Franciscus Homes, L.L.C. |
VA |
20-3832432 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Homes—DFW, L.L.C. |
TX | 20-5856823 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Homes at Belmont Overlook, L.L.C. |
VA |
26-1345784 |
110 West Front Street |
|||
K. Hovnanian Homes at Cider Mill, L.L.C. |
MD |
26-1345910 |
110 West Front Street |
|||
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C. |
MD |
20-3921234 |
110 West Front Street |
|||
K. Hovnanian Homes at Greenway Farm, L.L.C. |
MD |
20-3921143 |
110 West Front Street |
|||
K. Hovnanian Homes at Jones Station 1, L.L.C. |
MD |
20-3882481 |
110 West Front Street |
|||
K. Hovnanian Homes at Jones Station 2, L.L.C. |
MD |
20-3882532 |
110 West Front Street |
|||
K. Hovnanian Homes at Nassau Grove, L.L.C. |
DE |
26-1345685 |
110 West Front Street |
|||
K. Hovnanian Homes at Payne Street, L.L.C. |
VA |
20-4215898 |
110 West Front Street |
|||
K. Hovnanian Homes at Primera, L.L.C. |
MD |
20-3749553 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Homes at Victoria Station, L.L.C. |
VA | 26-1345747 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Homes of Georgia, L.L.C. |
GA |
20-4467858 |
110 West Front Street |
|||
K. Hovnanian Homes of Houston, L.L.C. |
TX |
20-5856877 |
110 West Front Street |
|||
K. Hovnanian Homes of Indiana, L.L.C. |
IN |
20-3278918 |
110 West Front Street |
|||
K. Hovnanian Homes of North Carolina, Inc. |
NC |
56-1458833 |
110 West Front Street |
|||
K. Hovnanian Homes of Virginia, Inc. |
VA |
52-0898765 |
110 West Front Street |
|||
K. Hovnanian Hudson Pointe Investments, L.L.C. |
NJ |
20-2695696 |
110 West Front Street |
|||
K. Hovnanian International, L.L.C. |
CA |
20-1906844 |
110 West Front Street |
|||
K. Hovnanian Investments II, L.L.C. |
NJ |
20-2695548 |
110 West Front Street |
|||
K. Hovnanian PA Real Estate, Inc. |
PA |
22-3188608 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian of Houston II, L.L.C. |
TX | 20-5856770 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Poland, SP .Z.O.O. |
INT'L |
22-3376430 |
110 West Front Street |
|||
K. Hovnanian Port Imperial Urban Renewal, Inc. |
NJ |
22-3027956 |
110 West Front Street |
|||
K. Hovnanian Properties of North Brunswick V, Inc. |
NJ |
22-2057907 |
110 West Front Street |
|||
K. Hovnanian Properties of Red Bank, Inc. |
NJ |
22-3092532 |
110 West Front Street |
|||
K. Hovnanian Standing Entity, L.L.C. |
FL |
20-2751668 |
110 West Front Street |
|||
K. Hovnanian Summit Homes of Kentucky, L.L.C. |
KY |
20-5166566 |
110 West Front Street |
|||
K. Hovnanian T&C Homes at Florida, L.L.C. |
FL |
20-2387167 |
110 West Front Street |
|||
K. Hovnanian T&C Homes at Illinois, L.L.C. |
IL |
20-2421114 |
110 West Front Street |
|||
K. Hovnanian T&C Homes at Minnesota, L.L.C. |
MN |
20-2383651 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Venture I, L.L.C. |
NJ | 02-0572173 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian's Four Seasons at Bailey's Glenn, L.L.C. |
NC |
26-1180295 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Beaumont, LLC |
CA |
31-1823029 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Charlottesville, L.L.C. |
VA |
20-3375037 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Hamptonburgh, L.L.C. |
NY |
26-1346213 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Huntfield, L.L.C. |
WV |
20-3375034 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at New Kent Vineyards, L.L.C. |
VA |
20-3375087 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Olde Liberty, L.L.C. |
NC |
20-8190485 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Renaissance, L.L.C. |
NC |
20-8190357 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian's Four Seasons at Rush Creek, L.L.C. |
MN | 20-3923972 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian's Parkside at Towngate, L.L.C. |
CA |
20-3158839 |
110 West Front Street |
|||
KHC Acquisition, Inc. |
CA |
22-3303802 |
110 West Front Street |
|||
Landarama, Inc. |
NJ |
22-1978612 |
110 West Front Street |
|||
M & M at Kensington Woods, L.L.C. |
NJ |
31-1819907 |
110 West Front Street |
|||
M & M at Long Branch, Inc. |
NJ |
22-3359254 |
110 West Front Street |
|||
M&M at Copper Beech, L.L.C. |
NJ |
20-5355079 |
110 West Front Street |
|||
M&M at Crescent Court, L.L.C. |
NJ |
20-5085522 |
110 West Front Street |
|||
M&M at East Rutherford, L.L.C. |
NJ |
20-4514649 |
110 West Front Street |
|||
M&M at Station Square L.L.C. |
NJ |
20-8354517 |
110 West Front Street |
|||
M&M at The Chateau, L.L.C. |
NJ |
20-3375109 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
M&M at Union, L.L.C. |
NJ | 26-1628832 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
M&M at Westport, L.L.C. |
NJ |
20-3494593 |
110 West Front Street |
|||
MCNJ, Inc. |
NJ |
22-2722906 |
110 West Front Street |
|||
Midwest Building Products & Contractor Services of Kentucky, L.L.C. |
KY |
20-5166559 |
110 West Front Street |
|||
Midwest Building Products & Contractor Services of Michigan, L.L.C. |
MI |
20-5065088 |
110 West Front Street |
|||
Midwest Building Products & Contractor Services of Pennsylvania, L.L.C. |
PA |
20-5071295 |
110 West Front Street |
|||
Midwest Building Products & Contractor Services of West Virginia, L.L.C. |
WV |
20-5065126 |
110 West Front Street |
|||
Millennium Title Agency, LTD |
OH |
34-1921771 |
110 West Front Street |
|||
Natomas Central Neighborhood Housing, L.L.C. |
CA |
20-3882414 |
110 West Front Street |
|||
New Land Title Agency, L.L.C. |
AZ |
26-0598590 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
Park Title Company, LLC |
TX | 20-1293533 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
PI Investments II, L.L.C. |
DE |
20-2695596 |
110 West Front Street |
|||
Ridgemore Utility Associates of Pennsylvania, L.L.C. |
PA |
20-4202417 |
110 West Front Street |
|||
Seabrook Accumulation Corporation |
CA |
33-0989615 |
110 West Front Street |
|||
Stonebrook Homes, Inc. |
CA |
33-0553884 |
110 West Front Street |
|||
Terrapin Realty, L.L.C. |
NJ |
20-4415708 |
110 West Front Street |
|||
The Matzel & Mumford Organization, Inc. |
NJ |
22-3670677 |
110 West Front Street |
|||
Washington Homes, Inc. |
DE |
22-3774737 |
110 West Front Street |
|||
Westminster Homes of Tennessee, Inc. |
TN |
52-1973363 |
110 West Front Street |
|||
Westminster Homes, Inc. |
NC |
52-1874680 |
110 West Front Street |
|||
WH Land I, Inc. |
MD |
52-2073468 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
WH Properties, Inc. |
MD | 52-1662973 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
WH/PR Land Company, L.L.C. |
DE |
52-0818872 |
110 West Front Street |
|||
Hovnanian Land Investment Group, L.L.C. |
MD |
20-0581911 |
110 West Front Street |
|||
Hovnanian Land Investment Group of California, L.L.C. |
CA |
20-1471139 |
110 West Front Street |
|||
Hovnanian Land Investment Group of Florida, L.L.C. |
FL |
20-1379037 |
110 West Front Street |
|||
Hovnanian Land Investment Group of Maryland, L.L.C. |
MD |
20-1446859 |
110 West Front Street |
|||
Hovnanian Land Investment Group of New Jersey, L.L.C. |
NJ |
20-3002580 |
110 West Front Street |
|||
Hovnanian Land Investment Group of North Carolina, L.L.C. |
NC |
20-1309025 |
110 West Front Street |
|||
Hovnanian Land Investment Group of Texas, L.L.C. |
TX |
20-1442111 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
Hovnanian Land Investment Group of Virginia, L.L.C. |
VA | 20-1020023 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at 4S, L.L.C. |
CA |
73-1638455 |
110 West Front Street |
|||
K. Hovnanian at Acqua Vista, L.L.C. |
CA |
20-0464160 |
110 West Front Street |
|||
K. Hovnanian at Aliso, L.L.C. |
CA |
20-1218567 |
110 West Front Street |
|||
K. Hovnanian at Allentown, L.L.C. |
PA |
20-3215910 |
110 West Front Street |
|||
K. Hovnanian at Arbor Heights, LLC |
CA |
33-0890775 |
110 West Front Street |
|||
K. Hovnanian at Avenue One, L.L.C. |
CA |
65-1161801 |
110 West Front Street |
|||
K. Hovnanian at Barnegat I, L.L.C. |
NJ |
22-3804316 |
110 West Front Street |
|||
K. Hovnanian at Barnegat II, L.L.C. |
NJ |
20-3030275 |
110 West Front Street |
|||
K. Hovnanian at Bella Lago, L.L.C. |
CA |
20-1218576 |
110 West Front Street |
|||
K. Hovnanian at Berkeley, L.L.C. |
NJ |
22-3644632 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Bernards V, L.L.C. |
DE | 22-3618587 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Blue Heron Pines, L.L.C. |
NJ |
22-3630449 |
110 West Front Street |
|||
K. Hovnanian at Bridgewater I, L.L.C. |
NJ |
31-1820703 |
110 West Front Street |
|||
K. Hovnanian at Bridlewood, L.L.C. |
CA |
20-1454077 |
110 West Front Street |
|||
K. Hovnanian at Camden I, L.L.C. |
NJ |
22-3845575 |
110 West Front Street |
|||
K. Hovnanian at Capistrano, L.L.C. |
CA |
20-1618465 |
110 West Front Street |
|||
K. Hovnanian at Carmel Village, L.L.C. |
CA |
52-2147831 |
110 West Front Street |
|||
K. Hovnanian at Cedar Grove III, L.L.C. |
NJ |
22-3818491 |
110 West Front Street |
|||
K. Hovnanian at Cedar Grove IV, L.L.C. |
NJ |
20-1185029 |
110 West Front Street |
|||
K. Hovnanian at Chester I, L.L.C. |
DE |
22-3618347 |
110 West Front Street |
|||
K. Hovnanian at Chesterfield, L.L.C. |
NJ |
20-0916310 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Clifton II, L.L.C. |
NJ | 22-3862906 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Clifton, L.L.C. |
NJ |
22-3655976 |
110 West Front Street |
|||
K. Hovnanian at Cortez Hill, L.L.C. |
CA |
31-1822959 |
110 West Front Street |
|||
K. Hovnanian at Cranbury, L.L.C. |
NJ |
22-3814347 |
110 West Front Street |
|||
K. Hovnanian at Curries Woods, L.L.C. |
NJ |
22-3776466 |
110 West Front Street |
|||
K. Hovnanian at Denville, L.L.C. |
NJ |
03-0436512 |
110 West Front Street |
|||
K. Hovnanian at Deptford Township, L.L.C. |
NJ |
20-1254802 |
110 West Front Street |
|||
K. Hovnanian at Dover, L.L.C. |
NJ |
20-3072574 |
110 West Front Street |
|||
K. Hovnanian at Eastlake, LLC |
CA |
31-1820096 |
110 West Front Street |
|||
K. Hovnanian at Edgewater II, L.L.C. |
NJ |
20-0374534 |
110 West Front Street |
|||
K. Hovnanian at Edgewater, L.L.C. |
NJ |
31-1825623 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Egg Harbor Township, L.L.C. |
NJ | 31-1826606 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Egg Harbor Township II, L.L.C. |
NJ |
20-3158355 |
110 West Front Street |
|||
K. Hovnanian at Encinitas Ranch, L.L.C. |
CA |
33-0890770 |
110 West Front Street |
|||
K. Hovnanian at Florence I, L.L.C. |
NJ |
20-0982613 |
110 West Front Street |
|||
K. Hovnanian at Florence II, L.L.C. |
NJ |
20-0982631 |
110 West Front Street |
|||
K. Hovnanian at Forest Meadows, L.L.C. |
NJ |
16-1639755 |
110 West Front Street |
|||
K. Hovnanian at Franklin, L.L.C. |
NJ |
20-1822595 |
110 West Front Street |
|||
K. Hovnanian at Freehold Township, L.L.C. |
NJ |
31-1819075 |
110 West Front Street |
|||
K. Hovnanian at Gaslamp Square, L.L.C. |
CA |
20-1454058 |
110 West Front Street |
|||
K. Hovnanian at Great Notch, L.L.C. |
NJ |
31-1819076 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Guttenberg, L.L.C. |
NJ | 22-3653007 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Hackettstown II, L.L.C. |
NJ |
20-0412492 |
110 West Front Street |
|||
K. Hovnanian at Hamburg Contractors, L.L.C. |
NJ |
22-3814175 |
110 West Front Street |
|||
K. Hovnanian at Hamburg, L.L.C. |
NJ |
22-3795544 |
110 West Front Street |
|||
K. Hovnanian at Hawthorne, L.L.C. |
NJ |
20-0946954 |
110 West Front Street |
|||
K. Hovnanian at Highland Shores, L.L.C. |
MN |
20-2705991 |
110 West Front Street |
|||
K. Hovnanian at Highwater, L.L.C. |
CA |
20-1454037 |
110 West Front Street |
|||
K. Hovnanian at Jackson I, L.L.C. |
NJ |
56-2290802 |
110 West Front Street |
|||
K. Hovnanian at Jackson, L.L.C. |
NJ |
22-3630450 |
110 West Front Street |
|||
K. Hovnanian at Jersey City IV, L.L.C. |
NJ |
22-3655974 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C. |
NJ | 31-1818646 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at King Farm, L.L.C. |
MD |
22-3647924 |
110 West Front Street |
|||
K. Hovnanian at La Costa, L.L.C. |
CA |
31-1820094 |
110 West Front Street |
|||
K. Hovnanian at La Habra Knolls, LLC |
CA |
31-1819908 |
110 West Front Street |
|||
K. Hovnanian at Lafayette Estates, L.L.C. |
NJ |
22-3658926 |
110 West Front Street |
|||
K. Hovnanian at Lake Ridge Crossing, L.L.C. |
VA |
22-3778537 |
110 West Front Street |
|||
K. Hovnanian at Lake Terrapin, L.L.C. |
VA |
22-3647920 |
110 West Front Street |
|||
K. Hovnanian at Lawrence V, L.L.C. |
DE |
22-3638073 |
110 West Front Street |
|||
K. Hovnanian at Linwood, L.L.C. |
NJ |
22-3663731 |
110 West Front Street |
|||
K. Hovnanian at Little Egg Harbor Township II, L.L.C. |
NJ |
20-2689884 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Little Egg Harbor Contractors, L.L.C. |
NJ | 22-3832077 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Little Egg Harbor, L.L.C. |
NJ |
22-3795535 |
110 West Front Street |
|||
K. Hovnanian at Long Branch I, L.L.C. |
NJ |
56-2308030 |
110 West Front Street |
|||
K. Hovnanian at Lower Macungie Township I, L.L.C. |
PA |
51-0427582 |
110 West Front Street |
|||
K. Hovnanian at Lower Macungie Township II, L.L.C. |
PA |
65-1161803 |
110 West Front Street |
|||
K. Hovnanian at Lower Makefield Township I, L.L.C. |
PA |
22-3887471 |
110 West Front Street |
|||
K. Hovnanian at Lower Moreland I, L.L.C. |
PA |
22-3785544 |
110 West Front Street |
|||
K. Hovnanian at Lower Moreland II, L.L.C. |
PA |
22-3785539 |
110 West Front Street |
|||
K. Hovnanian at Manalapan III, L.L.C. |
NJ |
31-1819073 |
110 West Front Street |
|||
K. Hovnanian at Mansfield I, LLC |
DE |
22-3556345 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Mansfield II, LLC |
DE | 22-3556346 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Mansfield III, L.L.C. |
NJ |
22-3683839 |
110 West Front Street |
|||
K. Hovnanian at Marlboro Township IX, L.L.C. |
NJ |
20-1005879 |
110 West Front Street |
|||
K. Hovnanian at Marlboro Township V, L.L.C. |
NJ |
31-1819074 |
110 West Front Street |
|||
K. Hovnanian at Marlboro Township VIII, L.L.C. |
NJ |
22-3802594 |
110 West Front Street |
|||
K. Hovnanian at Marlboro VI, L.L.C. |
NJ |
22-3791976 |
110 West Front Street |
|||
K. Hovnanian at Marlboro VII, L.L.C. |
NJ |
22-3791977 |
110 West Front Street |
|||
K. Hovnanian at Mendham Township, L.L.C. |
NJ |
20-2033800 |
110 West Front Street |
|||
K. Hovnanian at Menifee, L.L.C. |
CA |
52-2147832 |
110 West Front Street |
|||
K. Hovnanian at Menifee Valley Condominiums, L.L.C. |
CA |
20-1618446 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Middle Township, L.L.C. |
NJ | 03-0473330 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Middletown II, L.L.C. |
NJ |
04-3695371 |
110 West Front Street |
|||
K. Hovnanian at Middletown, L.L.C. |
DE |
22-3630452 |
110 West Front Street |
|||
K. Hovnanian at Millville I, L.L.C. |
NJ |
20-1562308 |
110 West Front Street |
|||
K. Hovnanian at Millville II, L.L.C. |
NJ |
20-2221380 |
110 West Front Street |
|||
K. Hovnanian at Millville III, L.L.C. |
NJ |
20-2977971 |
110 West Front Street |
|||
K. Hovnanian at Monroe III, L.L.C. |
NJ |
20-0876393 |
110 West Front Street |
|||
K. Hovnanian at Monroe IV, L.L.C. |
NJ |
20-2364423 |
110 West Front Street |
|||
K. Hovnanian at Montvale, L.L.C. |
NJ |
20-1584680 |
110 West Front Street |
|||
K. Hovnanian at Mosaic, LLC |
CA |
55-0820915 |
110 West Front Street |
|||
K. Hovnanian at Mt. Olive Township, L.L.C. |
NJ |
22-3813043 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at New Windsor, L.L.C. |
NY | 20-3158568 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at North Bergen, L.L.C. |
NJ |
31-1818663 |
110 West Front Street |
|||
K. Hovnanian at North Brunswick VI, L.L.C. |
DE |
22-3627814 |
110 West Front Street |
|||
K. Hovnanian at North Caldwell II, L.L.C. |
NJ |
20-1185057 |
110 West Front Street |
|||
K. Hovnanian at North Caldwell, L.L.C. |
NJ |
20-0412508 |
110 West Front Street |
|||
K. Hovnanian at North Haledon, L.L.C. |
NJ |
22-3770598 |
110 West Front Street |
|||
K. Hovnanian at North Wildwood, L.L.C. |
NJ |
59-3769684 |
110 West Front Street |
|||
K. Hovnanian at Northampton. L.L.C. |
PA |
22-3785527 |
110 West Front Street |
|||
K. Hovnanian at Northfield, L.L.C. |
NJ |
22-3665826 |
110 West Front Street |
|||
K. Hovnanian at Old Bridge, L.L.C. |
NJ |
55-0787042 |
110 West Front Street |
|||
K. Hovnanian at Olde Orchard, LLC |
CA |
51-0453906 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Pacific Bluffs, L.L.C. |
CA | 33-0890774 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Paramus, L.L.C. |
NJ |
22-3687884 |
110 West Front Street |
|||
K. Hovnanian at Park Lane, L.L.C. |
CA |
33-0896285 |
110 West Front Street |
|||
K. Hovnanian at Parsippany-Troy Hills, L.L.C. |
NJ |
20-2769490 |
110 West Front Street |
|||
K. Hovnanian at Philadelphia III, L.L.C. |
PA |
20-3216099 |
110 West Front Street |
|||
K. Hovnanian at Philadelphia IV, L.L.C. |
PA |
20-3216000 |
110 West Front Street |
|||
K. Hovnanian at Pittsgrove, L.L.C. |
NJ |
20-1562254 |
110 West Front Street |
|||
K. Hovnanian at Prado, L.L.C. |
CA |
20-3158762 |
110 West Front Street |
|||
K. Hovnanian at Rancho Santa Margarita, L.L.C. |
CA |
33-0890773 |
110 West Front Street |
|||
K. Hovnanian at Randolph I, L.L.C. |
NJ |
01-0712196 |
110 West Front Street |
|||
K. Hovnanian at Rapho, L.L.C. |
PA |
20-2293515 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Readington II, L.L.C. |
NJ | 31-1818662 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Red Bank, L.L.C. |
NJ |
20-2489028 |
110 West Front Street |
|||
K. Hovnanian at Riverbend, L.L.C. |
CA |
33-0890777 |
110 West Front Street |
|||
K. Hovnanian at Roderuck, L.L.C. |
MD |
22-3756336 |
110 West Front Street |
|||
K. Hovnanian at Rosemary Lantana, L.L.C. |
CA |
20-1786974 |
110 West Front Street |
|||
K. Hovnanian at Rowland Heights, L.L.C. |
CA |
22-2147833 |
110 West Front Street |
|||
K. Hovnanian at Sayreville, L.L.C. |
NJ |
22-3815459 |
110 West Front Street |
|||
K. Hovnanian at Smithville III, L.L.C. |
NJ |
31-1818661 |
110 West Front Street |
|||
K. Hovnanian at Somers Point, LLC |
NJ |
16-1639761 |
110 West Front Street |
|||
K. Hovnanian at South Brunswick, L.L.C. |
NJ |
01-0618098 |
110 West Front Street |
|||
K. Hovnanian at Springco, L.L.C. |
NJ |
65-1161805 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Springfield, L.L.C. |
NJ | 20-2892866 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Sunsets, L.L.C. |
CA |
33-0890768 |
110 West Front Street |
|||
K. Hovnanian at Teaneck, L.L.C. |
NJ |
20-1584240 |
110 West Front Street |
|||
K. Hovnanian at the Crosby, L.L.C. |
CA |
20-0936364 |
110 West Front Street |
|||
K. Hovnanian at the Gables, L.L.C. |
CA |
33-0890769 |
110 West Front Street |
|||
K. Hovnanian at The Preserve, L.L.C. |
CA |
20-1337079 |
110 West Front Street |
|||
K. Hovnanian at Thompson Ranch, L.L.C. |
CA |
20-1599518 |
110 West Front Street |
|||
K. Hovnanian at Trail Ridge, L.L.C. |
CA |
33-0990615 |
110 West Front Street |
|||
K. Hovnanian at Union Township II, L.L.C. |
NJ |
20-2828805 |
110 West Front Street |
|||
K. Hovnanian at Upper Freehold Township II, L.L.C. |
NJ |
22-3655975 |
110 West Front Street |
|||
K. Hovnanian at Upper Freehold Township III, L.L.C. |
NJ |
22-3666680 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Upper Uwchlan II, L.L.C. |
PA | 31-1820731 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Upper Uwchlan, L.L.C. |
PA |
59-3763798 |
110 West Front Street |
|||
K. Hovnanian at Vineland, L.L.C. |
NJ |
34-1997435 |
110 West Front Street |
|||
K. Hovnanian at Wanaque, L.L.C. |
DE |
22-3626037 |
110 West Front Street |
|||
K. Hovnanian at Warren Township, L.L.C. |
NJ |
20-2594932 |
110 West Front Street |
|||
K. Hovnanian at Washington, L.L.C. |
NJ |
22-3743403 |
110 West Front Street |
|||
K. Hovnanian at Wayne IX, L.L.C. |
NJ |
22-3828775 |
110 West Front Street |
|||
K. Hovnanian at Wayne VIII, L.L.C. |
DE |
22-3618348 |
110 West Front Street |
|||
K. Hovnanian at West Bradford, L.L.C. |
PA |
20-2560211 |
110 West Front Street |
|||
K. Hovnanian at West Milford, L.L.C. |
NJ |
22-3740951 |
110 West Front Street |
|||
K. Hovnanian at West Windsor, L.L.C. |
DE |
22-3618242 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian at Willow Brook, L.L.C. |
MD | 22-3709105 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian at Winchester, L.L.C. |
CA |
52-2147836 |
110 West Front Street |
|||
K. Hovnanian at Woodhill Estates, L.L.C. |
NJ |
01-0550781 |
110 West Front Street |
|||
K. Hovnanian at Woolwich I, L.L.C. |
NJ |
22-3828777 |
110 West Front Street |
|||
K. Hovnanian Cambridge Homes, L.L.C. |
FL |
20-2387077 |
110 West Front Street |
|||
K. Hovnanian Central Acquisitions, L.L.C. |
DE |
22-3556343 |
110 West Front Street |
|||
K. Hovnanian Companies of Metro D.C. North, L.L.C. |
MD |
22-3683159 |
110 West Front Street |
|||
K. Hovnanian Companies, LLC |
CA |
59-3762298 |
110 West Front Street |
|||
K. Hovnanian Eastern Pennsylvania, L.L.C. |
PA |
04-3630089 |
110 West Front Street |
|||
K. Hovnanian First Homes, L.L.C. |
FL |
20-3198237 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Four Seasons at Historic Virginia, L.L.C. |
VA | 22-3647925 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Four Seasons at Gold Hill, L.L.C. |
SC |
31-1820161 |
110 West Front Street |
|||
K. Hovnanian Great Western Building Company, L.L.C. |
AZ |
31-1825443 |
110 West Front Street |
|||
K. Hovnanian Great Western Homes, L.L.C. |
AZ |
31-1825441 |
110 West Front Street |
|||
K. Hovnanian Holdings NJ, L.L.C. |
NJ |
02-0651173 |
110 West Front Street |
|||
K. Hovnanian Homes at Cameron Station, L.L.C. |
VA |
20-1169628 |
110 West Front Street |
|||
K. Hovnanian Homes at Camp Springs, L.L.C. |
MD |
20-0812020 |
110 West Front Street |
|||
K. Hovnanian Homes at Fairwood, L.L.C. |
MD |
47-0880125 |
110 West Front Street |
|||
K. Hovnanian Homes at Forest Run, L.L.C. |
MD |
20-0812109 |
110 West Front Street |
|||
K. Hovnanian Homes at Maxwell Place, L.L.C. |
MD |
37-1493190 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Homes at Renaissance Plaza, L.L.C. |
MD | 20-0364144 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Homes at Russett, L.L.C. |
MD |
20-1526150 |
110 West Front Street |
|||
K. Hovnanian Homes of D.C., L.L.C. |
DC |
20-2377153 |
110 West Front Street |
|||
K. Hovnanian Homes of Delaware, L.L.C. |
DE |
20-1528482 |
110 West Front Street |
|||
K. Hovnanian Homes of Maryland, L.L.C. |
MD |
01-0737098 |
110 West Front Street |
|||
K. Hovnanian Homes of Minnesota, L.L.C. |
MN |
20-1200484 |
110 West Front Street |
|||
K. Hovnanian Homes of Pennsylvania, L.L.C. |
PA |
20-2376938 |
110 West Front Street |
|||
K. Hovnanian Homes of South Carolina, L.L.C. |
SC |
58-2660293 |
110 West Front Street |
|||
K. Hovnanian Homes of West Virginia, L.L.C. |
WV |
20-2828654 |
110 West Front Street |
|||
K. Hovnanian North Central Acquisitions, L.L.C. |
DE |
22-3554986 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian North Jersey Acquisitions, L.L.C. |
DE | 22-3556344 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Northeast Services, L.L.C. |
NJ |
16-1639452 |
110 West Front Street |
|||
K. Hovnanian Ohio Realty, L.L.C. |
OH |
32-0069376 |
110 West Front Street |
|||
K. Hovnanian Oster Homes, L.L.C. |
OH |
20-3198273 |
110 West Front Street |
|||
K. Hovnanian Pennsylvania Acquisitions, L.L.C. |
PA |
54-2064618 |
110 West Front Street |
|||
K. Hovnanian Shore Acquisitions, L.L.C. |
DE |
22-3556342 |
110 West Front Street |
|||
K. Hovnanian South Jersey Acquisitions, L.L.C. |
DE |
22-3556341 |
110 West Front Street |
|||
K. Hovnanian Southern New Jersey, L.L.C. |
NJ |
01-0648280 |
110 West Front Street |
|||
K. Hovnanian Summit Holdings, L.L.C. |
VA |
31-1818027 |
110 West Front Street |
|||
K. Hovnanian Summit Homes of Michigan, L.L.C. |
MI |
31-1826351 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian Summit Homes of Pennsylvania, L.L.C. |
PA | 20-0310776 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian Summit Homes of West Virginia, L.L.C. |
WV |
31-1826832 |
110 West Front Street |
|||
K. Hovnanian Summit Homes, L.L.C. |
OH |
32-0069379 |
110 West Front Street |
|||
K. Hovnanian T & C Investment, L.L.C. |
NJ |
20-2364394 |
110 West Front Street |
|||
K. Hovnanian T & C Management Co., L.L.C. |
CA |
20-2393546 |
110 West Front Street |
|||
K. Hovnanian Windward Homes, L.L.C. |
FL |
20-0301995 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Ashburn Village, L.L.C. |
VA |
20-0385213 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Bakersfield, L.L.C. |
CA |
20-1454116 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Dulles Discovery Condominium, L.L.C. |
VA |
20-1442155 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian's Four Seasons at Dulles Discovery, L.L.C. |
VA | 20-1169675 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
K. Hovnanian's Four Seasons at Hemet, L.L.C. |
CA |
47-0884181 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Kent Island, L.L.C. |
MD |
22-3668315 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Kent Island Condominiums, L.L.C. |
MD |
20-1727101 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Menifee Valley, L.L.C. |
CA |
20-1454143 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Palm Springs, L.L.C. |
CA |
57-1145579 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at St. Margarets Landing, L.L.C. |
MD |
22-3688864 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons at Vint Hill, L.L.C. |
VA |
31-1828049 |
110 West Front Street |
|||
K. Hovnanian's Four Seasons, L.L.C. |
CA |
52-2147837 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
K. Hovnanian's Private Home Portfolio, L.L.C. |
NJ | 22-3766856 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
KHIP, LLC |
NJ |
01-0752776 |
110 West Front Street |
|||
M&M at Apple Ridge, L.L.C. |
NJ |
22-3824654 |
110 West Front Street |
|||
M&M at Chesterfield, LLC |
NJ |
56-2290506 |
110 West Front Street |
|||
M&M at East Mill, L.L.C. |
NJ |
80-0036068 |
110 West Front Street |
|||
M&M at Morristown, L.L.C. |
NJ |
22-3834775 |
110 West Front Street |
|||
M&M at Sheridan, L.L.C. |
NJ |
22-3825357 |
110 West Front Street |
|||
M&M at Spinnaker Pointe, L.L.C. |
NJ |
22-3825041 |
110 West Front Street |
|||
M&M at Spruce Hollow, L.L.C. |
NJ |
22-3825064 |
110 West Front Street |
|||
M&M at Spruce Run, L.L.C. |
NJ |
22-3825037 |
110 West Front Street |
|||
M&M at Tamarack Hollow, L.L.C. |
NJ |
20-2033836 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
M&M at The Highlands, L.L.C. |
NJ | 22-3824649 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
M&M at West Orange, L.L.C. |
NJ |
55-0820919 |
110 West Front Street |
|||
M&M at Wheatena Urban Renewal, L.L.C. |
NJ |
20-1516521 |
110 West Front Street |
|||
Matzel & Mumford at Egg Harbor, L.L.C. |
NJ |
20-1706817 |
110 West Front Street |
|||
Matzel & Mumford at Montgomery, L.L.C. |
NJ |
22-3500542 |
110 West Front Street |
|||
Matzel & Mumford at South Bound Brook Urban Renewal, L.L.C. |
NJ |
20-0489677 |
110 West Front Street |
|||
Midwest Building Products & Contractor Services, L.L.C |
OH |
20-2882866 |
110 West Front Street |
|||
MMIP, L.L.C. |
NJ |
02-0651174 |
110 West Front Street |
|||
Paddocks, L.L.C. |
MD |
20-0027663 |
110 West Front Street |
|||
Pine Ayr, L.L.C. |
MD |
20-2229495 |
110 West Front Street |
Exact Name of Registrant As Specified in Its Charter |
State or Other Jurisdiction of Incorporation or Organization |
IRS Employer Identification Number |
Address Including Zip Code, and Telephone Number Including Area Code, of Registrant's Principal Executive Offices |
|||
|---|---|---|---|---|---|---|
Ridgemore Utility, L.L.C. |
MD | 31-1820672 | 110 West Front Street P.O. Box 500 Red Bank, New Jersey 07701 732-747-7800 |
|||
The Landings at Spinnaker Pointe, L.L.C. |
NJ |
22-3825040 |
110 West Front Street |
|||
Washington Homes at Columbia Town Center, LLC |
MD |
22-3757772 |
110 West Front Street |
|||
Westminster Homes of Alabama, L.L.C. |
MD |
63-1222540 |
110 West Front Street |
|||
Westminster Homes of Mississippi, L.L.C. |
MS |
64-0907820 |
110 West Front Street |
|||
Woodland Lakes Condos at Bowie Newtown, L.L.C. |
MD |
06-1643401 |
110 West Front Street |
|||
K. Hovnanian of Houston, L.P. |
TX |
01-0750780 |
110 West Front Street |
|||
M&M Investments, L.P. |
NJ |
22-3685183 |
110 West Front Street |
Information contained herein is subject to completion or amendment. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This prospectus shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Subject to completion, dated September 19, 2008
PRELIMINARY PROSPECTUS
$600,000,000
K. Hovnanian Enterprises, Inc.
Guaranteed by
Hovnanian Enterprises, Inc.
Offer to Exchange All Outstanding
111/2% Senior Secured Notes due 2013
($600,000,000 aggregate principal amount outstanding)
for 111/2% Senior Secured Notes due 2013, which have been registered
under the Securities Act of 1933
The Exchange Offer Will Expire at 5:00 p.m., New York City Time, on , 2008, Unless Extended
The Exchange Offer:
The
Exchange Notes:
Resales
of Exchange Notes:
You should consider carefully the "Risk Factors" beginning on page 14 of this prospectus before participating in the exchange offer.
Each broker-dealer that receives exchange notes for its own account in the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of those exchange notes. The letter of transmittal states that, by so acknowledging and delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act of 1933.
This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notes received in exchange for outstanding notes where the outstanding notes were acquired by the broker-dealer as a result of market-making activities or other trading activities.
We have agreed that, for a period of up to 180 days after the consummation of this exchange offer, we will use our best efforts to make this prospectus available to any broker-dealer for use in connection with the resale of exchange notes. See "Plan of Distribution."
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the exchange notes to be distributed in the exchange offer or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
This prospectus is dated , 2008.
| |
Page | |
|---|---|---|
Prospectus Summary |
1 | |
Risk Factors |
14 | |
Ratio of Earnings to Fixed Charges |
30 | |
Use of Proceeds |
31 | |
Capitalization |
32 | |
Selected Historical Consolidated Financial Data |
33 | |
The Exchange Offer |
34 | |
Description of Notes |
46 | |
Exchange Offer; Registration Rights |
88 | |
Book-Entry, Delivery and Form |
91 | |
United States Federal Income Tax Consequences of the Exchange Offer |
94 | |
Plan of Distribution |
95 | |
Legal Matters |
96 | |
Experts |
96 | |
Available Information |
96 | |
Incorporation of Certain Documents by Reference |
96 |
The information contained in this prospectus speaks only as of the date of this prospectus unless the information specifically indicates that another date applies. No dealer, salesperson or other person has been authorized to give any information or to make any representations other than those contained in this prospectus in connection with the offer contained herein and, if given or made, such information or representations must not be relied upon as having been authorized by us. Neither the delivery of this prospectus nor any sale made hereunder shall under any circumstances create an implication that there has been no change in our affairs or that of our subsidiaries since the date hereof.
In
this prospectus and except as the context otherwise requires or indicates:
This prospectus incorporates important business and financial information about the company that is not included in or delivered with the document. Hovnanian will provide without charge to each person, including any beneficial owner, to whom a copy of this prospectus is delivered, upon the written or oral request of such person, a copy of any or all of the information incorporated by reference in this prospectus, other than exhibits to such information (unless such exhibits are specifically incorporated by reference into the information that this prospectus incorporates). Requests for such copies should be directed to Paul W. Buchanan, Senior Vice President and Chief Accounting Officer, Hovnanian Enterprises, Inc., 110 West Front Street, P.O. Box 500, Red Bank, New Jersey 07701, (telephone:
i
(732) 747-7800). To obtain timely delivery, security holders must request the information no later than five business days before , 2008, the expiration date of the exchange offer.
This prospectus includes "forward-looking statements" including, in particular, the statements about our plans, strategies and prospects. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Although we believe that our plans, intentions and expectations reflected in, or suggested by such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. Such risks, uncertainties and other factors include, but are not limited to, (1) changes in general and local economic and industry and business conditions, (2) adverse weather conditions and natural disasters, (3) changes in market conditions and seasonality of the Company's business, (4) changes in home prices and sales activity in the markets where the Company builds homes, (5) government regulation, including regulations concerning development of land, the home building, sales and customer financing process, and the environment, (6) fluctuations in interest rates and the availability of mortgage financing, (7) shortages in, and price fluctuations of, raw materials and labor, (8) the availability and cost of suitable land and improved lots, (9) levels of competition, (10) availability of financing to the Company, (11) utility shortages and outages or rate fluctuations, (12) levels of indebtedness and restrictions on the Company's operations and activities imposed by the agreements governing the Company's outstanding indebtedness; (13) operations through joint ventures with third parties; (14) product liability litigation and warranty claims; (15) successful identification and integration of acquisitions; (16) significant influence of the Company's controlling stockholders; (17) geopolitical risks, terrorist acts and other acts of war; and (18) other factors described in detail in our Form 10-K for the year ended October 31, 2007 and in this prospectus under "Risk Factors". All forward-looking statements attributable to the Company or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements and risk factors contained throughout this prospectus. Except as otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
ii
The following summary contains information about Hovnanian and the exchange offer. It does not contain all of the information that may be important to you in making a decision to participate in the exchange offer. For a more complete understanding of Hovnanian and the exchange offer, we urge you to read this prospectus carefully, including the "Risk Factors" section and our financial statements and the notes to those statements incorporated by reference herein.
The Company
We design, construct, market and sell single-family detached homes, attached townhomes and condominiums, mid-rise and high-rise condominiums, urban infill and active adult homes in planned residential developments and are one of the nation's largest builders of residential homes. Founded in 1959 by Kevork Hovnanian, Hovnanian Enterprises, Inc. was incorporated in New Jersey in 1967 and reincorporated in Delaware in 1983. Since the incorporation of our predecessor company and including unconsolidated joint ventures, we have delivered in excess of 277,000 homes, including 8,802 homes in the nine months ended July 31, 2008. The Company consists of two distinct operations: homebuilding and financial services. Our homebuilding operations consist of six segments: Northeast, Mid-Atlantic, Midwest, Southeast, Southwest and West. Our financial services operations provide mortgage loans and title services to the customers of our homebuilding operations.
We are currently, excluding unconsolidated joint ventures, offering homes for sale in 354 communities in 44 markets in 18 states throughout the United States. We market and build homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active adult buyers and empty nesters. We offer a variety of home styles at base prices ranging from $36,000 (low income housing) to $3,000,000 with an average sales price, including options, of $338,000 nationwide in fiscal 2007.
Our operations span all significant aspects of the home-buying process—from design, construction and sale, to mortgage origination and title services.
The following is a summary of our growth history:
1959—Founded by Kevork Hovnanian as a New Jersey homebuilder.
1983—Completed initial public offering.
1986—Entered the North Carolina market through the investment in New Fortis Homes.
1992—Entered the greater Washington, D.C. market.
1994—Entered the Coastal Southern California market.
1998—Expanded in the greater Washington, D.C. market through the acquisition of P.C. Homes.
1999—Entered the Dallas, Texas market through our acquisition of Goodman Homes. Further diversified and strengthened our position as New Jersey's largest homebuilder through the acquisition of Matzel & Mumford.
2001—Continued expansion in the greater Washington, D.C. and North Carolina markets through the acquisition of Washington Homes. This acquisition further strengthened our operations in each of these markets.
2002—Entered the Central Valley market in Northern California and Inland Empire region of Southern California through the acquisition of Forecast Homes.
2003—Expanded operations in Texas and entered the Houston market through the acquisition of Parkside Homes and Brighton Homes. Entered the greater Ohio market through our acquisition of
1
Summit Homes and entered the greater metro Phoenix market through our acquisition of Great Western Homes.
2004—Entered the greater Tampa, Florida market through the acquisition of Windward Homes, and started operations in the Minneapolis/St. Paul, Minnesota market.
2005—Entered the Orlando, Florida market through our acquisition of Cambridge Homes and entered the greater Chicago, Illinois market and expanded our position in Florida and Minnesota through the acquisition of the operations of Town & Country Homes, which occurred concurrently with our entering into a joint venture with affiliates of Blackstone Real Estate Advisors to own and develop Town & Country's existing residential communities. We also entered the Fort Myers, Florida market through the acquisition of First Home Builders of Florida, and the Cleveland, Ohio market through the acquisition of Oster Homes.
2006—Entered the coastal markets of South Carolina and Georgia through the acquisition of Craftbuilt Homes.
Hovnanian markets and builds homes that are constructed in 23 of the nation's top 50 housing markets. We segregate our homebuilding operations geographically into the following six segments:
Northeast: New Jersey, New York, Pennsylvania
Mid-Atlantic: Delaware, Maryland, Virginia, West Virginia, Washington, D.C.
Midwest: Illinois, Kentucky, Michigan, Minnesota, Ohio
Southeast: Florida, Georgia, North Carolina, South Carolina
Southwest: Arizona, Texas
West: California
We employed approximately 4,318 full-time employees (which we refer to as associates) as of October 31, 2007.
Our corporate offices are located at 110 West Front Street, P. O. Box 500, Red Bank, New Jersey 07701, our telephone number is (732) 747-7800, and our Internet website address is www.khov.com. Information on our website is not a part of, or incorporated by reference in, this prospectus.
2
Summary of the Terms of the Exchange Offer
On May 27, 2008, K. Hovnanian completed a private offering of the outstanding notes.
General |
In connection with the private offering of the outstanding notes, we entered into a registration rights agreement with the initial purchasers of the outstanding notes in which the Issuer and the guarantors agreed, among other things, to deliver this prospectus to you and to complete an exchange offer for the outstanding notes within the time period specified in the registration rights agreement. See "Exchange Offer; Registration Rights." |
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You are entitled to exchange in the exchange offer your outstanding notes for exchange notes, which are identical in all material respects to the outstanding notes except: |
||||
• |
the exchange notes have been registered under the Securities Act of 1933, as amended, which we refer to as the "Securities Act"; |
|||
• |
the exchange notes are not entitled to certain registration rights which are applicable to the outstanding notes under the registration rights agreement; and |
|||
• |
certain additional interest rate provisions are no longer applicable. |
|||
Outstanding Notes |
$600,000,000 aggregate principal amount of 111/2% Senior Secured Notes due 2013, which were issued on May 27, 2008, and which we refer to in this prospectus as the "outstanding notes." |
|||
Exchange Notes |
$600,000,000 aggregate principal amount of 111/2% Senior Secured Notes due 2013, which we are offering in this exchange offer and which we refer to in this prospectus as the "exchange notes." |
|||
The Exchange Offer |
We are offering to exchange up to $600,000,000 aggregate principal amount of our exchange notes, which have been registered under the Securities Act, for a like aggregate principal amount of the outstanding notes. You may only exchange outstanding notes in denominations of $2,000 and higher integral multiples of $1,000. |
|||
Subject to the satisfaction or waiver of specified conditions, we will exchange the exchange notes for all outstanding notes that are validly tendered and not validly withdrawn prior to the expiration of the exchange offer. We will cause the exchange to be effected promptly after the expiration of the exchange offer. |
||||
Upon completion of the exchange offer, there may be no market for the outstanding notes and you may have difficulty selling them. |
||||
Resales |
Based on interpretations by the staff of the Securities and Exchange Commission, or the "SEC," set forth in no-action letters issued to third parties referred to below, we believe that you may resell or otherwise transfer exchange notes issued in the exchange offer without complying with the |
|||
3
registration and prospectus delivery requirements of the Securities Act, if: |
||||
(1) |
you are not an "affiliate" of K. Hovnanian or any guarantor of the notes within the meaning of Rule 405 under the Securities Act; |
|||
(2) |
you are not engaged in, do not intend to engage in, and have no arrangement or understanding with any person to participate in, a distribution of the exchange notes; and |
|||
(3) |
you are acquiring the exchange notes in the ordinary course of your business. |
|||
If you are an affiliate of K. Hovnanian or the guarantors of the notes, or are engaging in, or intend to engage in, or have any arrangement or understanding with any person to participate in, a distribution of the exchange notes, or are not acquiring the exchange notes in the ordinary course of your business: |
||||
(1) |
you cannot rely on the position of the staff of the SEC enunciated in Morgan Stanley & Co., Inc. (available June 5, 1991), Exxon Capital Holdings Corporation (available May 13, 1988), as interpreted in the SEC's letter to Shearman & Sterling (available July 2, 1993), or similar no-action letters; and |
|||
(2) |
in the absence of an exception from the position of the SEC stated in (1) above, you must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any resale or other transfer of the exchange notes. |
|||
If you are a broker-dealer and receive exchange notes for your own account in exchange for outstanding notes that you acquired as a result of market-making or other trading activities, you must acknowledge that you will deliver a prospectus, as required by law, in connection with any resale or other transfer of the exchange notes that you receive in the exchange offer. See "Plan of Distribution." |
||||
Expiration Date |
The exchange offer will expire at 5:00 p.m., New York City time, on , 2008 unless extended by us. We do not currently intend to extend the expiration date. |
|||
Withdrawal |
You may withdraw the tender of your outstanding notes at any time prior to the expiration date. We will return to you any of your outstanding notes that are not accepted for any reason for exchange, without expense to you, promptly after the expiration or termination of the exchange offer. |
|||
Interest on the Exchange Notes and the Outstanding Notes |
Each exchange note will bear interest at the rate per annum set forth on the cover page of this prospectus from the most recent date to which interest has been paid on the outstanding notes or, if no interest has been paid on the outstanding notes, from May 27, 2008. The interest will be payable semi-annually on each May 1 and November 1, beginning November 1, 2008. No interest will be paid on outstanding notes following their acceptance for exchange. |
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4
Conditions to the Exchange Offer |
The exchange offer is subject to customary conditions, which we may assert or waive. See "The Exchange Offer—Conditions to the Exchange Offer." |
|||
Procedures for Tendering Outstanding Notes |
If you wish to participate in the exchange offer, you must complete, sign and date the accompanying letter of transmittal, or a facsimile of the letter of transmittal, according to the instructions contained in this prospectus and the letter of transmittal. You must then mail or otherwise deliver the letter of transmittal, or a facsimile of the letter of transmittal, together with the outstanding notes and any other required documents, to the exchange agent at the address set forth on the cover page of the letter of transmittal. If you hold outstanding notes through The Depository Trust Company, or "DTC," and wish to participate in the exchange offer, you must comply with the Automated Tender Offer Program procedures of DTC, by which you will agree to be bound by the letter of transmittal. By signing, or agreeing to be bound by, the letter of transmittal, you will represent to us that, among other things: |
|||
(1) |
you are not an "affiliate" of K. Hovnanian or the guarantors of the notes within the meaning of Rule 405 under the Securities Act; |
|||
(2) |
you are not engaged in, do not intend to engage in, and have no arrangement or understanding with any person to participate in, a distribution of the exchange notes; |
|||
(3) |
you are acquiring the exchange notes in the ordinary course of your business; and |
|||
(4) |
if you are a broker-dealer and receive exchange notes for your own account in exchange for outstanding notes that you acquired as a result of market-making or other trading activities, that you will deliver a prospectus, as required by law, in connection with any resale or other transfer of such exchange notes. |
|||
If you are an affiliate of K. Hovnanian or the guarantors of the notes or are engaging in, or intend to engage in, or have any arrangement or understanding with any person to participate in, a distribution of the exchange notes, or are not acquiring the exchange notes in the ordinary course of your business, you cannot rely on the applicable positions and interpretations of the staff of the SEC and you must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any resale or other transfer of the exchange notes. |
||||
Special Procedures for Beneficial Owners |
If you are a beneficial owner of outstanding notes that are held in the name of a broker, dealer, commercial bank, trust company or other nominee and you wish to tender those outstanding notes in the exchange offer, you should contact such person promptly and instruct such person to tender those outstanding notes on your behalf. |
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5
Guaranteed Delivery Procedures |
If you wish to tender your outstanding notes and your outstanding notes are not immediately available or you cannot deliver your outstanding notes, the letter of transmittal and any other documents required by the letter of transmittal or you cannot comply with the DTC procedures for book-entry transfer prior to the expiration date, you must tender your outstanding notes according to the guaranteed delivery procedures set forth in this prospectus under "The Exchange Offer—Guaranteed Delivery Procedures." |
|||
Effect on Holders of Outstanding Notes |
In connection with the sale of the outstanding notes, we entered into a registration rights agreement with the initial purchasers of the outstanding notes, which grants the holders of outstanding notes registration rights. By making this exchange offer, we will have fulfilled most of our obligations under the registration rights agreement. Accordingly, we will not be obligated to pay additional interest as described in the registration rights agreement. If you do not tender your outstanding notes in the exchange offer, you will continue to be entitled to all the rights and limitations applicable to the outstanding notes as set forth in the indenture, except we will not have any further obligation to you to provide for the registration of the outstanding notes under the registration rights agreement and we will not be obligated to pay additional interest as described in the registration rights agreement, except in certain limited circumstances. See "Exchange Offer; Registration Rights." |
|||
To the extent that outstanding notes are tendered and accepted in the exchange offer, the trading market for outstanding notes could be adversely affected. |
||||
Consequences of Failure to Exchange |
All untendered outstanding notes will continue to be subject to the restrictions on transfer set forth in the outstanding notes and in the indenture. In general, the outstanding notes may not be offered or sold, unless registered under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the Securities Act and applicable state securities laws. We do not currently anticipate that we will register the outstanding notes under the Securities Act. |
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Certain Income Tax Considerations |
The exchange of outstanding notes for exchange notes in the exchange offer will not be a taxable event for United States federal income tax purposes. See "United States Federal Income Tax Consequences of the Exchange Offer." |
|||
Use of Proceeds |
We will not receive any cash proceeds from the issuance of exchange notes in the exchange offer. |
|||
Exchange Agent |
Wilmington Trust Company, whose address and telephone number is set forth in the section captioned "The Exchange Offer—Exchange Agent" of this prospectus, is the exchange agent for the exchange offer. |
|||
6
Summary of the Terms of the Exchange Notes
The terms of the exchange notes are identical in all material respects to the terms of the outstanding notes, except that the exchange notes will not contain terms with respect to transfer restrictions or additional interest upon a failure to fulfill certain of our obligations under the registration rights agreement. The exchange notes will evidence the same debt as the outstanding notes. The exchange notes will be governed by the same indenture under which the outstanding notes were issued and the exchange notes and the outstanding notes will constitute a single class and series of notes for all purposes under the indenture.
| Issuer | K. Hovnanian Enterprises, Inc. | |||
Notes Offered |
We are offering $600.0 million aggregate principal amount of 111/2% Senior Secured Notes due 2013. |
|||
Maturity Date |
May 1, 2013. |
|||
Interest Payment Dates |
Each May 1 and November 1, beginning November 1, 2008. |
|||
Optional Redemption |
We may redeem some or all of the notes at any time on or after November 1, 2010, at the redemption prices specified under the section "Description of Notes—Redemption" plus accrued and unpaid interest. In addition, we may redeem up to 35% of the aggregate principal amount of the notes before May 1, 2011 with the net cash proceeds from certain equity offerings at a price equal to 111.50% of the principal amount thereof plus accrued and unpaid interest. |
|||
Change of Control |
Upon a Change of Control as described in the section "Description of Notes," you will have the right to require us to purchase some or all of the notes at 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. We can give no assurance that, upon such an event, we will have sufficient funds to purchase any of the notes. |
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Guarantees |
The guarantors are Hovnanian Enterprises, Inc., the parent corporation of the Issuer, and substantially all of the parent's existing and future restricted subsidiaries. If the Issuer cannot make payments on the notes when they are due, the guarantors must make the payments instead. As of the date of this prospectus, our home mortgage subsidiaries, our joint ventures and certain of our title insurance subsidiaries are not guarantors or restricted subsidiaries. |
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Ranking |
The exchange notes will be the Issuer's and the guarantors' general senior secured obligations and will: |
|||
• |
rank senior in right of payment to the Issuer's and the guarantors' existing and future debt and other obligations that expressly provide for their subordination to the notes and the guarantees; |
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7
| • | rank equally in right of payment to all of the Issuer's and the guarantors' existing and future unsubordinated debt and, together with indebtedness under our Revolving Credit Agreement and any other secured obligations, effectively senior in right of payment to all the Issuer's and the guarantors' existing and future unsecured debt to the extent of the value of the collateral; | |||
• |
be effectively junior to the Issuer's and the guarantors' debt that is secured by priority liens on the collateral, including indebtedness under our Revolving Credit Agreement to the extent of the value of the collateral; and |
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• |
be structurally subordinated to all of the existing and future liabilities, including trade payables, of our subsidiaries that do not guarantee the Notes. |
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At July 31, 2008, the Issuer and the guarantors had: |
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• |
approximately $627.3 million of secured indebtedness outstanding, including the outstanding notes; |
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• |
$1.5 billion of senior unsecured notes; |
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• |
$0.4 billion of senior subordinated notes; and |
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• |
an aggregate outstanding face amount of letters of credit under our Revolving Credit Agreement of approximately $219.7 million and no outstanding revolving loans. |
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In addition, as of July 31, 2008, our non-guarantor subsidiaries had approximately $89.1 million of liabilities, including trade payables, but excluding intercompany obligations. |
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See the section "Description of Notes—Ranking." |
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Collateral |
The exchange notes and the guarantees thereof will be secured by a second-priority lien on substantially all the assets owned by the Issuer and guarantors on May 27, 2008 or thereafter acquired to the extent such assets secure obligations under the Revolving Credit Agreement and certain other permitted indebtedness. The lenders under our Revolving Credit Agreement and certain other indebtedness will benefit from first-priority liens on the collateral. |
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The collateral will not include: |
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• |
the pledge of stock of subsidiaries to the extent such pledge would result in separate financial statements of such subsidiary being filed with the SEC; |
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• |
personal property where the cost of obtaining a security interest or perfection thereof exceeds its benefits; |
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• |
real property subject to a lien securing indebtedness incurred for the purpose of financing the acquisition thereof; |
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8
| • | real property located outside of the United States; | |||
• |
unentitled land; |
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• |
real property which is leased or held for the purpose of leasing to unaffiliated third parties; |
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• |
equity interests in subsidiaries other than restricted subsidiaries, subject to future grants under certain circumstances as required under the indenture; |
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• |
any real property in a community under development with a dollar amount of investment as of the most recent month-end (determined in accordance with GAAP) of less than $2.0 million or with less than 10 lots remaining; |
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• |
up to $50.0 million of assets received in certain asset dispositions or asset swaps or exchanges made in accordance with the indenture; |
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• |
assets with respect to which any applicable law or contract prohibits the creation or perfection of security interests therein; and |
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• |
any other assets excluded from the collateral securing the Revolving Credit Agreement and any other indebtedness or obligations secured by first-priority liens on the collateral. |
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In addition, the Issuer and the guarantors will not be required to provide control agreements with respect to certain deposit, checking or securities accounts with average balances below a certain dollar amount. |
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For more details, see the section "Description of Notes—Security." |
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Intercreditor Agreement |
Pursuant to an intercreditor agreement, the liens securing the notes will be second-priority liens that will be expressly junior in priority to the liens that secure (1) obligations under our Revolving Credit Agreement, (2) certain other future indebtedness permitted to be incurred under the indenture governing the notes and (3) certain obligations under our hedging arrangements. Pursuant to the intercreditor agreement, the liens securing the notes may not be enforced at any time when obligations secured by priority liens are outstanding, except for certain limited exceptions. Any release (except in connection with repayment in full of the priority lien obligations) of priority liens upon any collateral approved by holders of such priority liens will also release the liens securing the notes on the same collateral. The holders of the priority liens will receive all proceeds from any realization on the collateral or from the collateral or proceeds thereof in any insolvency or liquidation proceeding until the obligations secured by the priority liens are paid in full. |
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9
| Sharing of Liens | In certain circumstances, we may secure specified indebtedness permitted to be incurred under the indenture governing the notes by granting liens upon any or all of the collateral securing the notes, including on an equal basis with the first-priority liens securing the Revolving Credit Agreement or on a junior basis. | |||
Certain Covenants |
The exchange notes will be issued under the same indenture as the outstanding notes were issued. The indenture contains covenants that, among other things, restrict the Issuer's ability and the ability of the guarantors to: |
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• |
borrow money; |
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• |
pay dividends and distributions on our common and preferred stock; |
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• |
repurchase our senior and senior subordinated notes and our common and preferred stock; |
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• |
make investments in subsidiaries and joint ventures that are not restricted; |
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• |
sell certain assets; |
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• |
incur certain liens; |
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• |
merge with or into other companies; and |
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• |
enter into certain transactions with our affiliates. |
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For more details, see the section "Description of Notes—Certain covenants." |
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Absence of a Public Market |
The exchange notes will generally be freely transferable (subject to certain restrictions discussed in "Exchange Offer; Registration Rights") but will be a new issue of securities for which there will not initially be a market. Accordingly, there can be no assurance as to the development or liquidity of any market for the exchange notes. The initial purchasers in the private offering of the outstanding notes have advised us that they currently intend to make a market for the exchange notes, as permitted by applicable laws and regulations. However, they are not obligated to do so and may discontinue any such market making activities at any time without notice. We do not intend to apply for a listing of the exchange notes on any securities exchange or automated dealer quotation system. |
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Use of Proceeds |
We will not receive any cash proceeds from the issuance of the exchange notes in the exchange offer. For a description of the use of proceeds from the private offering of the outstanding notes, see "Use of Proceeds." |
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10
The following table presents summary historical consolidated financial and other data of Hovnanian Enterprises, Inc. and subsidiaries as of and for the years ended October 31, 2007, 2006 and 2005 and the nine months ended July 31, 2008 and 2007. The consolidated financial and other data for the years ended October 31, 2007, 2006 and 2005 have been derived from Hovnanian Enterprises, Inc.'s audited consolidated financial statements and the consolidated financial and other data for the nine months ended July 31, 2008 and 2007 have been derived from Hovnanian Enterprises, Inc.'s unaudited consolidated financial statements. Operating results for the nine months ended July 31, 2008 are not necessarily indicative of the results that may be expected for the entire year ending October 31, 2008. You should read this data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference herein and our consolidated financial statements and related notes incorporated by reference herein.
| |
Year Ended | Nine Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Summary Consolidated Income Statement and Other Data (In Thousands, Except Per Share Data) |
October 31, 2007 |
October 31, 2006 |
October 31, 2005 |
July 31, 2008 | July 31, 2007 | ||||||||||||
Revenues |
$ | 4,798,921 | $ | 6,148,235 | $ | 5,348,417 | $ | 2,586,681 | $ | 3,407,052 | |||||||
Inventory impairment loss and land option write-offs |
$ | 457,773 | $ | 336,204 | $ | 5,360 | $ | 446,961 | $ | 184,420 | |||||||
(Loss) income from unconsolidated joint ventures |
$ | (28,223 | ) | $ | 15,385 | $ | 35,039 | $ | (9,356 | ) | $ | (2,934 | ) | ||||
Pre-tax (loss) income excluding land related charges and intangible impairments(l) |
$ | (20,887 | ) | $ | 581,360 | $ | 785,945 | $ | (254,747 | ) | $ | 6,249 | |||||
(Loss) income before income taxes |
$ | (646,966 | ) | $ | 233,106 | $ | 780,585 | $ | (711,585 | ) | $ | (234,195 | ) | ||||
State and Federal income tax (benefit) provision |
(19,847 | ) | 83,573 | 308,738 | (37,454 | ) | (73,669 | ) | |||||||||
Net (loss) income |
(627,119 |
) |
149,533 |
471,847 |
(674,131 |
) |
(160,526 |
) |
|||||||||
Less: preferred stock dividends |
10,674 | 10,675 | 2,758 | — | 8,006 | ||||||||||||
Net (loss) income available to common stockholders |
$ | (637,793 | ) | $ | 138,858 | $ | 469,089 | $ | (674,131 | ) | $ | (168,532 | ) | ||||
Per share data: |
|||||||||||||||||
Basic: |
|||||||||||||||||
(Loss) income per common share |
$ | (10.11 | ) | $ | 2.21 | $ | 7.51 | $ | (9.98 | ) | $ | (2.67 | ) | ||||
Weighted average number of common shares outstanding |
63,079 | 62,822 | 62,490 | 67,574 | 63,036 | ||||||||||||
Assuming dilution: |
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(Loss) income per common share |
$ | (10.11 | ) | $ | 2.14 | $ | 7.16 | $ | (9.98 | ) | $ | (2.67 | ) | ||||
Weighted average number of common shares outstanding |
63,079 | 64,838 | 65,549 | 67,574 | 63,036 | ||||||||||||
11
and
notes incorporated by reference herein. Additionally, our calculation of pre-tax (loss) income excluding land related charges and intangible impairments may be different than the
calculation used by other companies, and, therefore, comparability may be affected. Management believes pre-tax (loss) income excluding land related charges to be relevant and useful
information because it provides a better metric for our operating performance.
Reconciliation of pre-tax (loss) income excluding land related charges and intangible impairments to (loss) income before income taxes (in thousands):
| |
Year Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
October 31, 2007 |
October 31, 2006 |
October 31, 2005 |
July 31, 2008 | July 31, 2007 | |||||||||||
(Loss) income before income taxes |
$ | (646,966 | ) | $ | 233,106 | $ | 780,585 | $ | (711,585 | ) | $ | (234,195 | ) | |||
Inventory impairment loss and land option write-offs |
$ | 457,773 | $ | 336,204 | $ | 5,360 | $ | 446,961 | $ | 184,420 | ||||||
Intangible impairments |
$ | 135,206 | $ | 4,241 | $ | — | $ | — | $ | 54,707 | ||||||
Unconsolidated joint venture intangible and land related charges |
$ | 33,100 | $ | 7,809 | — | $ | 9,877 | $ | 1,317 | |||||||
Pre-tax (loss) income excluding land related charges and intangible impairments |
$ | (20,887 | ) | $ | 581,360 | $ | 785,945 | $ | (254,747 | ) | $ | 6,249 | ||||
Summary Consolidated Balance Sheet Data (In Thousands) |
October 31, 2007 |
October 31, 2006 |
October 31, 2005 |
July 31, 2008 | July 31, 2007 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets |
$ | 4,540,548 | $ | 5,480,035 | $ | 4,726,138 | $ | 4,101,708 | $ | 5,362,762 | ||||||
Mortgages, term loans, revolving credit agreements, and notes payable |
$ | 410,298 | $ | 319,943 | $ | 271,868 | $ | 110,458 | $ | 636,796 | ||||||
Senior secured notes, senior notes and senior subordinated notes |
$ | 1,910,600 | $ | 2,049,778 | $ | 1,498,739 | $ | 2,505,474 | $ | 2,050,628 | ||||||
Stockholders' equity |
$ | 1,321,803 | $ | 1,942,163 | $ | 1,791,357 | $ | 777,894 | $ | 1,785,734 | ||||||
12
Important indicators of our future results are recently signed contracts and home contract backlog for future deliveries. Our sales contracts and homes in contract backlog, which primarily use base sales prices by segment, are set forth below:
| |
Net Contracts(1) for the Nine Months Ended July 31, |
Contract Backlog as of July 31, |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2008 | 2007 | |||||||||
| |
(Dollars in Thousands) |
||||||||||||
Northeast: |
|||||||||||||
Dollars |
$ | 315,020 | $ | 584,035 | $ | 329,914 | $ | 571,495 | |||||
Homes |
766 | 1,202 | 733 | 1,066 | |||||||||
Mid-Atlantic: |
|||||||||||||
Dollars |
$ | 262,928 | $ | 558,393 | $ | 247,309 | $ | 497,697 | |||||
Homes |
723 | 1,212 | 570 | 1,015 | |||||||||
Midwest: |
|||||||||||||
Dollars |
$ | 88,021 | $ | 177,066 | $ | 95,418 | $ | 157,594 | |||||
Homes |
413 | 779 | 474 | 762 | |||||||||
Southeast: |
|||||||||||||
Dollars |
$ | 118,931 | $ | 235,619 | $ | 84,899 | $ | 702,385 | |||||
Homes |
493 | 801 | 300 | 2,437 | |||||||||
Southwest: |
|||||||||||||
Dollars |
$ | 414,939 | $ | 589,900 | $ | 146,282 | $ | 255,498 | |||||
Homes |
1,817 | 2,644 | 636 | 1,129 | |||||||||
West: |
|||||||||||||
Dollars |
$ | 355,260 | $ | 668,963 | $ | 91,666 | $ | 299,153 | |||||
Homes |
1,109 | 1,587 | 263 | 717 | |||||||||
Consolidated total: |
|||||||||||||
Dollars |
$ | 1,555,099 | $ | 2,813,976 | $ | 995,488 | $ | 2,483,822 | |||||
Homes |
5,321 | 8,225 | 2,976 | 7,126 | |||||||||
Unconsolidated joint ventures: |
|||||||||||||
Dollars |
$ | 177,088 | $ | 156,047 | $ | 179,937 | $ | 352,265 | |||||
Homes |
418 | 500 | 326 | 737 | |||||||||
Totals: |
|||||||||||||
Dollars |
$ | 1,732,187 | $ | 2,970,023 | $ | 1,175,425 | $ | 2,836,087 | |||||
Homes |
5,739 | 8,725 | 3,302 | 7,863 | |||||||||
13
In addition to the other information included in this prospectus and the documents incorporated by reference in this prospectus, you should carefully consider the following risk factors before you decide to participate in the exchange offer.
Risks Related to the Exchange Offer
If you choose not to exchange your outstanding notes in the exchange offer, the transfer restrictions currently applicable to your outstanding notes will remain in force and the market price of your outstanding notes could decline.
If you do not exchange your outstanding notes for exchange notes in the exchange offer, then you will continue to be subject to the transfer restrictions on the outstanding notes as set forth in the offering circular distributed in connection with the private offering of the outstanding notes. In general, the outstanding notes may not be offered or sold unless they are registered or exempt from registration under the Securities Act and applicable state securities laws. Except as required by the registration rights agreement, we do not intend to register resales of the outstanding notes under the Securities Act. You should refer to "Prospectus Summary—Summary of the Terms of the Exchange Offer" and "The Exchange Offer" for information about how to tender your outstanding notes.
The tender of outstanding notes under the exchange offer will reduce the principal amount of the outstanding notes outstanding, which may have an adverse effect upon, and increase the volatility of, the market price of the outstanding notes due to reduction in liquidity.
You must follow the exchange offer procedures carefully in order to receive the exchange notes.
If you do not follow the procedures described herein, you will not receive any exchange notes. The exchange notes will be issued to you
in exchange for outstanding notes only after timely receipt by the exchange agent of:
If you want to tender your outstanding notes in exchange for exchange notes, you should allow sufficient time to ensure timely delivery. No one is under any obligation to give you notification of defects or irregularities with respect to tenders of outstanding notes for exchange. For additional information, see the section captioned "The Exchange Offer" in this prospectus.
Risks Related to Our Business
The homebuilding industry is significantly affected by changes in general and local economic conditions, real estate markets and weather conditions, which could affect our ability to build homes at prices our customers are willing or able to pay, could reduce profits that may not be recaptured, could result in cancellation of sales contracts and could affect our liquidity.
The homebuilding industry is cyclical, has from time to time experienced significant difficulties and is significantly affected by
changes in general and local economic conditions such as:
14
Turmoil in the financial markets could affect our liquidity. In addition, our cash balances are held at numerous financial institutions and may, at times, exceed insurable amounts. We believe we help to mitigate this risk by depositing our cash in major financial institutions and diversifying our investments. We also depend upon the lenders under our Revolving Credit Agreement to be able to perform under their commitments.
Weather conditions and natural disasters such as hurricanes, tornadoes, earthquakes, floods and fires can harm the local homebuilding business. Our business in Florida was adversely affected in late 2005 and into 2006 due to the impact of Hurricane Wilma on materials and labor availability and pricing.
The difficulties described above could cause us to take longer and incur more costs to build our homes. We may not be able to recapture increased costs by raising prices in many cases because we fix our prices up to twelve months in advance of delivery by signing home sales contracts. In addition, some home buyers may cancel or not honor their home sales contracts altogether.
The homebuilding industry is undergoing a significant and sustained downturn which has, and could continue to, materially and adversely affect our business, liquidity and results of operations.
The homebuilding industry is now experiencing a significant and sustained downturn. An industry-wide softening of demand for new homes has resulted from a lack of consumer confidence, decreased housing affordability, decreased availability of mortgage financing, and large supplies of resale and new home inventories. In addition, an oversupply of alternatives to new homes, such as rental properties and resale homes, has depressed prices and reduced margins for the sale of new homes. Industry conditions had a material adverse effect on our business and results of operations during fiscal year 2007 and are continuing to materially adversely affect our business and results of operations in fiscal 2008. For example, we are continuing to experience slower sales, reductions in our margins and higher cancellations which impact most of our markets. Further, we substantially increased our inventory in recent years, which required significant cash outlays and which has increased our price and margin exposure as we continue to work through this inventory. Continuation of this downturn would continue to have a material adverse effect on our business, liquidity and results of operations.
Leverage places burdens on our ability to comply with the terms of our indebtedness, may restrict our ability to operate, may prevent us from fulfilling our obligations and may adversely affect our financial condition.
We have a significant amount of debt:
15
In addition, we had substantial contractual commitments and contingent obligations, including $671.5 million of performance bonds as of July 31, 2008. See "Management's Discussion of Financial Condition and Results of Operations—Contractual Obligations" in our Annual Report on Form 10-K for the year ended October 31, 2007 incorporated by reference herein.
Our
significant amount of debt could have important consequences. For example, it could:
Our ability to meet our debt service and other obligations will depend upon our future performance. We are engaged in businesses that are substantially affected by changes in economic cycles. Our revenues and earnings vary with the level of general economic activity in the markets we serve. Our businesses are also affected by customer sentiment and financial, political, business and other factors, many of which are beyond our control. The factors that affect our ability to generate cash can also affect our ability to raise additional funds for these purposes through the sale of equity securities, the refinancing of debt, or the sale of assets. Changes in prevailing interest rates may affect our ability to meet our debt service obligations, because borrowings under our Revolving Credit Agreement bear interest at floating rates. A higher interest rate on our debt service obligations could result in lower earnings.
Our business may not generate sufficient cash flow from operations and borrowings may not be available to us under our Revolving Credit Agreement in an amount sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. Under the Revolving Credit Agreement, the amount available for revolving loans is limited to $25 million until the borrowing base is deemed effective by the Administrative Agent (expected no later than October 31, 2008), and to $100 million thereafter, with the remaining amounts available for the issuance of letters of credit. We may need to refinance all or a portion of our debt on or before maturity, which we may not be able to do on favorable terms or at all.
Restrictive covenants in our debt instruments may restrict our ability to operate and if our financial performance worsens, we may not be able to maintain compliance with the financial covenants of our debt instruments.
The indentures governing our outstanding debt securities and our Revolving Credit Agreement impose restrictions on our operations and activities. The most significant restrictions relate to debt incurrence, sales of assets, cash distributions, including paying dividends on common and preferred stock, capital stock and debt repurchases, and investments by us and certain of our subsidiaries. The
16
covenants in our Revolving Credit Agreement also include a borrowing base covenant and a covenant requiring either a minimum operating cash flow coverage ratio or minimum liquidity as of the last day of each fiscal quarter but do not contain any other financial covenants. Our level of home deliveries, amount of impairments and other financial performance factors negatively impacted the borrowing base and financial covenants under the Revolving Credit Agreement prior to its amendment in May 2008 and there can be no assurance that we will not violate the financial or other covenants under our debt instruments in the future or that the amount available under our revolving credit line would not be reduced.
In addition, as a result of the restrictions in our indentures, which would require our fixed charge coverage ratio to be at least 2.0 to 1.0, we are currently restricted from paying dividends on our Series A Preferred Stock and will continue to be restricted during the remainder of fiscal 2008. If current market trends continue or worsen, we anticipate that we will continue to be restricted from paying dividends into fiscal 2009.
If we fail to comply with any of the restrictions or covenants of our debt instruments, and are unable to amend the instrument or obtain a waiver, or make timely payments on this debt and other material indebtedness, we could be precluded from incurring additional borrowings under our Revolving Credit Agreement and the trustees or the banks, as appropriate, could cause our debt to become due and payable prior to maturity. In such a situation, there can be no assurance that we would be able to obtain alternative financing. In addition, if we are in default of these agreements, we may be prohibited from drawing additional funds under the Revolving Credit Agreement, which could impair our ability to maintain sufficient working capital. Either situation could have a material adverse effect on the solvency of the Company.
The terms of our debt instruments allow us to incur additional indebtedness.
Under the terms of our indebtedness under our indentures and under the Revolving Credit Agreement, we have the ability, subject to our debt covenants, to incur additional amounts of debt. The incurrence of additional indebtedness could magnify the risks described above. In addition, certain obligations such as standby letters of credit and performance bonds issued in the ordinary course of business are not considered indebtedness under our indentures (and may be secured) and are therefore not subject to limits in our debt covenants.
We could be adversely affected by a negative change in our credit rating.
Our ability to access capital on favorable terms is a key factor in continuing to grow our business and operations in a profitable manner. Recently, Moody's and S&P lowered our credit ratings, which may make it more difficult and costly for us to access capital. A further downgrade by any of the principal credit agencies may exacerbate these difficulties.
Our business is seasonal in nature and our quarterly operating results can fluctuate.
Our quarterly operating results generally fluctuate by season. Historically, a large percentage of our agreements of sale have been entered into in the winter and spring. The construction of a customer's home typically begins after signing the agreement of sale and can take 12 months or more to complete. Weather-related problems, typically in the late winter and early spring, can delay starts or closings and increase costs and thus reduce profitability. In addition, delays in opening communities could have an adverse impact on our sales and revenues. Due to these factors, our quarterly operating results may continue to fluctuate.
17
Our success depends on the availability of suitable undeveloped land and improved lots at acceptable prices.
Our success in developing land and in building and selling homes depends in part upon the continued availability of suitable undeveloped land and improved lots at acceptable prices. The availability of undeveloped land and improved lots for purchase at favorable prices depends on a number of factors outside of our control, including the risk of competitive over-bidding on land and lots and restrictive governmental regulation. Should suitable land opportunities become less available, the number of homes we may be able to build and sell would be reduced, which would reduce revenue and profits.
Raw material and labor shortages and price fluctuations could delay or increase the cost of home construction and adversely affect our operating results.
The homebuilding industry has from time to time experienced raw material and labor shortages. In particular, shortages and fluctuations in the price of lumber or in other important raw materials could result in delays in the start or completion of, or increase the cost of, developing one or more of our residential communities. In addition, we contract with subcontractors to construct our homes. Therefore, the timing and quality of our construction depends on the availability, skill and cost of our subcontractors. Delays or cost increases caused by shortages and price fluctuations could harm our operating results, the impact of which may be further affected depending on our ability to raise sales prices.
Changes in economic and market conditions could result in the sale of homes at a loss or holding land in inventory longer than planned, the cost of which can be significant.
Land inventory risk can be substantial for homebuilders. We must continuously seek and make acquisitions of land for expansion into new markets and for replacement and expansion of land inventory within our current markets. The market value of undeveloped land, buildable lots and housing inventories can fluctuate significantly as a result of changing economic and market conditions. In the event of significant changes in economic or market conditions, we may have to sell homes at a loss or hold land in inventory longer than planned. In the case of land options, we could choose not to exercise them, in which case we would write off the value of these options. Inventory carrying costs can be significant and can result in losses in a poorly performing project or market. For example, during 2007 and 2006 we decided not to exercise many option contracts and walked away from land option deposits and predevelopment costs, which resulted in land option write-offs of $126.0 million and $159.1 million, respectively. Also, in 2007 and 2006, as a result of the slowing market, we recorded inventory impairment losses on owned property of $331.8 million and $177.1 million, respectively. For the nine months ended July 31, 2008, we recorded inventory impairment losses on owned property of $380.4 million and we further recorded $66.6 million of land option write-offs.
Home prices and sales activities in the California, New Jersey, Texas, North Carolina, Virginia, Maryland, Florida and Arizona markets have a large impact on our profitability because we conduct a significant portion of our business in these markets.
We presently conduct a significant portion of our business in the California, New Jersey, Texas, North Carolina, Virginia, Maryland, Florida and Arizona markets. Home prices and sales activities in these markets, and in most of the other markets in which we operate, have declined from time to time, particularly as a result of slow economic growth. In particular, Arizona, California, Florida, New Jersey, Virginia and Maryland have continued to slow since the end of 2006. Furthermore, precarious economic and budget situations at the state government level may adversely affect the market for our homes in those affected areas. If home prices and sales activity decline in one or more of the markets in which we operate, our costs may not decline at all or at the same rate and profits may be reduced.
18
Because almost all of our customers require mortgage financing, increases in interest rates or the decreased availability of mortgage financing could impair the affordability of our homes, lower demand for our products, limit our marketing effectiveness, and limit our ability to fully realize our backlog.
Virtually all of our customers finance their acquisitions through lenders providing mortgage financing. Increases in interest rates or decreases in availability of mortgage financing could lower demand for new homes because of the increased monthly mortgage costs to potential home buyers. Even if potential customers do not need financing, changes in interest rates and mortgage availability could make it harder for them to sell their existing homes to potential buyers who need financing. This could prevent or limit our ability to attract new customers as well as our ability to fully realize our backlog because our sales contracts generally include a financing contingency. Financing contingencies permit the customer to cancel his obligation in the event mortgage financing at prevailing interest rates, including financing arranged or provided by us, is unobtainable within the period specified in the contract. This contingency period is typically four to eight weeks following the date of execution of the sales contract.
Over the last several quarters, many lenders have significantly tightened their underwriting standards, and many subprime and other alternative mortgage products are no longer being made available in the marketplace. If these trends continue and mortgage loans continue to be difficult to obtain, the ability and willingness of prospective buyers to finance home purchases or to sell their existing homes will be adversely affected, which will adversely affect our operating results.
In addition, we believe that the availability of FNMA, FHLMC, FHA and VA mortgage financing is an important factor in marketing many of our homes. Any limitations or restrictions on the availability of those types of financing could reduce our sales.
We conduct certain of our operations through unconsolidated joint ventures with independent third parties in which we do not have a controlling interest. These investments involve risks and are highly illiquid.
We currently operate through a number of unconsolidated homebuilding and land development joint ventures with independent third parties in which we do not have a controlling interest. At July 31, 2008, we had invested an aggregate of $164.1 million in these joint ventures, which had borrowings outstanding of approximately $335.8 million. In addition, as part of our strategy, we intend to continue to evaluate additional joint venture opportunities.
These investments involve risks and are highly illiquid. There are a limited number of sources willing to provide acquisition, development and construction financing to land development and homebuilding joint ventures, and as the use of joint venture arrangements by us and our competitors increases and as market conditions become more challenging, it may be difficult or impossible to obtain financing for our joint ventures on commercially reasonable terms. In addition, we lack a controlling interest in these joint ventures and therefore are usually unable to require that our joint ventures sell assets or return invested capital, make additional capital contributions or take any other action without the vote of at least one of our venture partners. Therefore, absent partner agreement, we will be unable to liquidate our joint venture investments to generate cash.
Homebuilders are subject to a number of federal, local, state and foreign laws and regulations concerning the development of land, the home building, sales and customer financing processes and protection of the environment, which can cause us to incur delays and costs associated with compliance and which can prohibit or restrict our activity in some regions or areas.
We are subject to extensive and complex regulations that affect the development and home building, sales and customer financing processes, including zoning, density, building standards and mortgage financing. These regulations often provide broad discretion to the administering governmental authorities. This can delay or increase the cost of development or homebuilding. In addition, some
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state and local governments in markets where we operate have approved, and others may approve, slow growth or no growth initiatives that could negatively impact the availability of land and building opportunities within those areas. Approval of these initiatives could adversely affect our ability to build and sell homes in the affected markets and/or could require the satisfaction of additional administrative and regulatory requirements, which could result in slowing the progress or increasing the costs of our homebuilding operations in these markets. Any such delays or costs could have a negative effect on our future revenues and earnings.
We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment. The particular environmental laws which apply to any given community vary greatly according to the community site, the site's environmental conditions and the present and former uses of the site. These environmental laws may result in delays, may cause us to incur substantial compliance, remediation, and/or other costs, and can prohibit or severely restrict development and homebuilding activity in certain environmentally sensitive regions or areas.
For example, during 2005, we received requests for information from the Environmental Protection Agency (the "EPA") pursuant to provisions of the Clean Water Act. These requests sought information concerning storm water discharge practices in connection with completed, ongoing and planned homebuilding projects in the states and district that comprise EPA Region 3. We provided the EPA with information in response to its requests. The Department of Justice ("DOJ") subsequently also has become involved in the review of our storm water discharge practices and enforcement with respect to them. We have subsequently received a notification with respect to another development from the EPA alleging violations of storm water discharge practices and requesting related information. We cannot predict the outcome of the review of these practices or estimate the costs that may be involved in resolving the matter. To the extent that the EPA or the DOJ asserts violations of regulatory requirements and request injunctive relief or penalties, we will defend and attempt to resolve such asserted violations.
It can be anticipated that increasingly stringent requirements will be imposed on developers and homebuilders in the future. Although we cannot predict the effect of these requirements, they could result in time-consuming and expensive compliance programs and in substantial expenditures, which could cause delays and increase our cost of operations. In addition, the continued effectiveness of permits already granted or approvals already obtained is dependent upon many factors, some of which are beyond our control, such as changes in policies, rules and regulations and their interpretation and application.
Product liability litigation and warranty claims that arise in the ordinary course of business may be costly.
As a homebuilder, we are subject to construction defect and home warranty claims arising in the ordinary course of business. Such claims are common in the homebuilding industry and can be costly. In addition, the amount and scope of coverage offered by insurance companies is currently limited and this coverage may be further restricted and become more costly. If we are not able to obtain adequate insurance against such claims, we may experience losses that could hurt our financial results. Our financial results could also be adversely affected if we were to experience an unusually high number of claims or unusually severe claims.
We compete on several levels with homebuilders that may have greater sales and financial resources, which could hurt future earnings.
We compete not only for home buyers but also for desirable properties, financing, raw materials and skilled labor often within larger subdivisions designed, planned and developed by other homebuilders. Our competitors include other local, regional and national homebuilders, some of which have greater sales and financial resources.
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The
competitive conditions in the homebuilding industry together with current market conditions have, and could continue to, result in:
Any of these problems could increase costs and/or lower profit margins.
We may have difficulty in obtaining the additional financing required to operate and develop our business.
Our operations require significant amounts of cash, and we may be required to seek additional capital, whether from sales of equity or borrowing additional money, for the future growth and development of our business. The terms or availability of additional capital is uncertain. Moreover, the indentures for our outstanding debt securities and our Revolving Credit Agreement contain provisions that restrict the debt we may incur and the equity we may issue in the future. If we are not successful in obtaining sufficient capital, it could reduce our sales and may hinder our future growth and results of operations. In addition, pledging substantially all of our assets to support the Revolving Credit Agreement and the notes may make it more difficult to raise additional financing in the future.
Our future growth may include additional acquisitions of companies that may not be successfully integrated and may not achieve expected benefits.
Acquisitions of companies have contributed to our growth and are a component of our growth strategy. In March 2005, we acquired Cambridge Homes and Town & Country Homes; in August 2005, we acquired Oster Homes and First Home Builders of Florida and in April 2006, we acquired Craftbuilt Homes. In the future, we may acquire other businesses, some of which may be significant. As a result of acquisitions of companies, we may need to seek additional financing and integrate product lines, dispersed operations and distinct corporate cultures. These integration efforts may not succeed or may distract our management from operating our existing business. Additionally, we may not be able to enhance our earnings as a result of acquisitions. Our failure to successfully identify and manage future acquisitions could harm our operating results.
Our controlling stockholders are able to exercise significant influence over us.
Kevork S. Hovnanian, the Chairman of our Board of Directors, and Ara K. Hovnanian, our President and Chief Executive Officer, have voting control, through personal holdings and family-owned entities, of Class A and Class B common stock that enables them to cast approximately 71.6% of the votes that may be cast by the holders of our outstanding Class A and Class B common stock combined. Their combined stock ownership enables them to exert significant control over us, including power to control the election of our Board of Directors and to approve matters presented to our stockholders. This concentration of ownership may also make some transactions, including mergers or other changes in control, more difficult or impossible without their support. Also, because of their combined voting power, circumstances may occur in which their interests could be in conflict with the interests of other stakeholders.
Our net operating loss carryforwards could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.
Based on recent impairments and our current financial performance, we expect to generate net operating loss carryforwards for the year ending October 31, 2008, and possibly future years.
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Section 382 of the Internal Revenue Code contains rules that limit the ability of a company that undergoes an ownership change, which is generally any change in ownership of more than 50% of its stock over a three-year period, to utilize its net operating loss carryforwards and certain built in losses recognized in years after the ownership change. These rules generally operate by focusing on ownership changes among stockholders owning directly or indirectly 5% or more of the stock of a company or any change in ownership arising from a new issuance of stock by the company.
If we undergo an ownership change for purposes of Section 382 as a result of future transactions involving our common stock, including purchases or sales of stock between 5% shareholders, our ability to use our net operating loss carryforwards and recognize certain built in losses would be subject to the limitations of Section 382. Depending on the resulting limitation, a significant portion of our net operating loss carryforwards could expire before we would be able to use them. Our inability to utilize our net operating loss carryforwards could have a negative impact on our financial position and results of operations.
Utility shortages and outages or rate fluctuations could have an adverse effect on our operations.
In prior years, the areas in which we operate in California have experienced power shortages, including periods without electrical power, as well as significant fluctuations in utility costs. We may incur additional costs and may not be able to complete construction on a timely basis if such power shortages/outages and utility rate fluctuations continue. Furthermore, power shortages and outages, such as the blackout that occurred in 2003 in the Northeast, and rate fluctuations may adversely affect the regional economies in which we operate, which may reduce demand for our homes. Our operations may be adversely affected if further rate fluctuations and/or power shortages and outages occur in California, the Northeast or in our other markets.
Geopolitical risks and market disruption could adversely affect our operating results and financial condition.
Geopolitical events, such as the aftermath of the war with Iraq and the continuing involvement in Iraq, may have a substantial impact on the economy and the housing market. The terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001 had an impact on our business and the occurrence of similar events in the future cannot be ruled out. The war and the continuing involvement in Iraq, terrorism and related geopolitical risks have created many economic and political uncertainties, some of which may have additional material adverse effects on the U.S. economy, and our customers and, in turn, our results of operations and financial condition.
Risks Related to the Notes
After completion of the offering, we will have a significant amount of indebtedness and we may incur additional indebtedness.
At July 31, 2008, the Issuer and the guarantors had approximately $2,515.0 million of debt (including the outstanding notes) outstanding. We and our subsidiaries may incur additional indebtedness in the future. Subject to certain conditions, the terms of the indenture under which the outstanding notes were, and the exchange notes will be, issued and our other existing debt instruments do not prohibit us or our subsidiaries from incurring additional indebtedness. If indebtedness is added to our current debt levels, the risks related to the notes and our indebtedness generally that we and our subsidiaries now face could intensify.
The notes will be structurally junior to indebtedness of our non-guarantor subsidiaries and joint ventures.
You will not have any claim as a creditor against any of our non-guarantor subsidiaries and joint ventures, and indebtedness and other liabilities, including trade payables, of those subsidiaries and joint ventures will effectively be senior to your claims against those subsidiaries and joint ventures. At
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July 31, 2008, our non-guarantor subsidiaries and joint ventures had $89.1 million and $395.4 million, respectively, of outstanding liabilities, including trade payables. In addition, the indenture under which the outstanding notes were, and the exchange notes will be, issued will, subject to certain limitations, permit these subsidiaries and joint ventures to incur additional indebtedness and will not contain any limitation on the amount of other liabilities, such as trade payables, that may be incurred by these subsidiaries.
Certain of our subsidiaries and all of our joint venture operations are not subject to the restrictive covenants in the indenture under which the outstanding notes were, and the exchange notes will be, issued.
Certain of our subsidiaries and all of our joint venture operations are not subject to the restrictive covenants in the indenture under which the outstanding notes were, and the exchange notes will be, issued. This means that these entities will be able to engage in many of the activities that we and our restricted subsidiaries are prohibited or limited from doing under the terms of such indenture, such as incurring additional debt, securing assets in priority to the claims of the holders of the notes, paying dividends, making investments, selling assets and entering into mergers or other business combinations. These actions could be detrimental to our ability to make payments of principal and interest when due and to comply with our other obligations under the notes, and could reduce the amount of our assets that would be available to satisfy your claims should we default on the notes.
All obligations under our Revolving Credit Agreement will be secured by first-priority liens on collateral that will also secure the notes. As a result, the notes will be effectively junior to all such obligations, to the extent of the value of such collateral.
All obligations under our Revolving Credit Agreement will be secured by first-priority liens on collateral that will also secure the notes, which will be secured by a second-priority lien on such collateral. As a result, the notes will be effectively junior to all of the obligations under the Revolving Credit Agreement to the extent of the value of such collateral. The effect of this subordination is that upon a default in payment on, or the acceleration of, any obligations under our Revolving Credit Agreement, or in the event of our, or our subsidiary guarantors', bankruptcy, insolvency, liquidation, dissolution, reorganization or similar proceeding, the proceeds from the sale of the assets that secure our Revolving Credit Agreement will be available to pay obligations on the notes only after all obligations under our Revolving Credit Agreement have been paid in full.
The notes will be secured only to the extent of the value of the assets that have been granted as security for the notes and in the event that the security is enforced against the collateral, the holders of the notes will receive proceeds from the collateral only after the lenders under our Revolving Credit Agreement and certain holders of additional secured debt.
Substantially all the assets owned by us and the guarantors on the date of the indenture or thereafter acquired, and all proceeds therefrom, will be subject to first-priority liens in favor of the lenders under our Revolving Credit Agreement. The holders of the notes will have second-priority liens on such assets, excluding pledges of stock of subsidiaries to the extent they would result in the filing of separate financial statements in SEC filings. Because obligations under our Revolving Credit Agreement will be secured on a first-priority basis, our failure to comply with the terms of that agreement would entitle those lenders to declare all funds borrowed under it to be immediately due and payable. If we were unable to service the indebtedness under the Revolving Credit Agreement, the lenders could foreclose on our assets that serve as collateral. As a result, upon any distribution to our creditors, liquidation, reorganization or similar proceedings, or following acceleration of any of our indebtedness or an event of default under our indebtedness and enforcement of the collateral, the lenders under our Revolving Credit Agreement will be entitled to be repaid in full from the proceeds of all the pledged assets owned by the Issuer and guarantors on the date of the indenture or thereafter
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acquired securing the indebtedness to them before any payment is made to you from the proceeds of that collateral.
In addition, the collateral securing the notes will be subject to liens permitted under the terms of the indenture governing the notes and the intercreditor agreement, whether arising on or after the date the notes are issued. The existence of any permitted liens could adversely affect the value of the collateral securing the notes as well as the ability of the collateral agent to realize or foreclose on such collateral.
Furthermore, all of the collateral has not been appraised in connection with this offering of exchange notes. As of July 31, 2008 the aggregate book value of the real property collateral was approximately $1.9 billion, which does not include the impact of inventory investments, home deliveries or impairments thereafter. The fair market value of this collateral is subject to fluctuations based on factors that include, among others, the condition of the homebuilding industry, our ability to implement our business strategy, the ability to sell the collateral in an orderly sale, general economic conditions, the availability of buyers and similar factors. The amount to be received upon a sale of the collateral would be dependent on numerous factors, including but not limited to the actual fair market value of the collateral at such time and the timing and the manner of the sale. By its nature, some or all of the collateral may be illiquid and may have no readily ascertainable market value. In the event that a bankruptcy case is commenced by or against us, if the value of the collateral is less than the amount of principal and accrued and unpaid interest on the notes and all other senior secured obligations, interest may cease to accrue on the notes from and after the date the bankruptcy petition is filed. In the event of a foreclosure, liquidation, bankruptcy or similar proceeding, we cannot assure you that the proceeds from any sale or liquidation of the collateral will be sufficient to pay our obligations under the notes.
In
addition, not all of our assets secure the notes. See "Description of Notes—Security." For example, the collateral will not
include:
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In addition, the Issuer and the guarantors will not be required to provide control agreements with respect to certain deposit, checking or securities accounts with average balances below a certain dollar amount.
In the future, the obligation to grant additional security over assets, or a particular type or class of assets, whether as a result of the acquisition or creation of future assets or subsidiaries, the designation of a previously unrestricted subsidiary as a restricted subsidiary or otherwise, is subject to the provisions of the intercreditor agreement. The intercreditor agreement sets out a number of limitations on the rights of the holders of the notes to require security in certain circumstances, which may result in, among other things, the amount recoverable under any security provided by any subsidiary being limited and/or security not being granted over a particular type or class of assets. Accordingly, this may affect the value of the security provided by us and our subsidiaries.
To the extent that the claims of the holders of the notes exceed the value of the assets securing those notes and other liabilities, those claims will rank equally with the claims of the holders of our outstanding unsecured senior notes and any other indebtedness ranking pari passu with those unsecured notes. As a result, if the value of the assets pledged as security for the notes is less than the value of the claims of the holders of the notes, those claims may not be satisfied in full before the claims of our unsecured creditors are paid. Furthermore, upon enforcement against any collateral or in insolvency, under the terms of the intercreditor agreement the claims of the holders of the notes to the proceeds of such enforcement will rank behind the claims of the holders of obligations under our Revolving Credit Agreement, which are first-priority obligations, and holders of additional secured indebtedness (to the extent permitted to have priority by the indenture).
In addition, the security interest of the collateral agent will be subject to practical problems generally associated with the realization of security interests in collateral. For example, the collateral agent may need to obtain the consent of a third party to obtain or enforce a security interest in a contract. We cannot assure you that the collateral agent will be able to obtain any such consent. We also cannot assure you that the consents of any third parties will be given when required to facilitate a foreclosure on such assets. Accordingly, the collateral agent may not have the ability to foreclose upon those assets and the value of the collateral may significantly decrease.
The rights of holders of notes to the collateral will be governed, and materially limited, by the intercreditor agreement.
The rights of holders of notes to the collateral will be governed, and materially limited, by the intercreditor agreement. The holders of indebtedness under our Revolving Credit Agreement, which is secured on a first-priority basis, will control substantially all matters related to the collateral securing such indebtedness and the notes pursuant to the terms of the intercreditor agreement. Under the intercreditor agreement, at any time that the indebtedness secured on a first- priority basis remains outstanding, any actions that may be taken in respect of the collateral, including the ability to commence enforcement proceedings against the collateral and to control the conduct of such proceedings, and the approval of amendments to, releases of collateral from the lien of, and waivers of past defaults under, the collateral documents, will be at the direction of the holders of such indebtedness, and the trustee on behalf of the holders of the notes, with limited exceptions, will not have the ability to control or direct such actions, even if the rights of the holders of the notes are adversely affected. Any release (unless the release is in connection with termination of the Revolving Credit Agreement) of all first-priority liens upon any collateral approved by the holders of first-priority liens will also release the second-priority liens securing the notes on the same collateral. See "Description of Notes—Security—Release of Liens"
Because the lenders under the Revolving Credit Agreement will control the disposition of the collateral securing the Revolving Credit Agreement and the notes, if there were an event of default
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under the notes, the lenders could decide not to proceed against the collateral, regardless of whether or not there is a default under the Revolving Credit Agreement. In such event, the only remedy available to the holders of the notes would be to sue for payment on the notes and the guarantees. By virtue of the direction of the administration of the pledges and security interests and the release of collateral, actions may be taken under the collateral documents that may be adverse to you.
Your rights in the collateral may be adversely affected by the failure to perfect security interests in collateral.
Applicable law requires that a security interest in certain tangible and intangible assets can only be properly perfected and its priority retained through certain actions undertaken by the secured party. The liens in the collateral securing the notes may not be perfected with respect to the claims of the notes if the collateral agent is not able to take the actions necessary to perfect any of these liens on or prior to the date of the indenture governing the notes. In addition, applicable law requires that certain property and rights acquired after the grant of a general security interest, such as real property, can only be perfected at the time such property and rights are acquired and identified. We and the guarantors have limited obligations to perfect the security interest of the holders of the notes in specified collateral. There can be no assurance that the trustee or the collateral agent for the notes will monitor, or that we will inform such trustee or collateral agent of, the future acquisition of property and rights that constitute collateral, and that the necessary action will be taken to properly perfect the security interest in such after-acquired collateral. The collateral agent for the notes has no obligation to monitor the acquisition of additional property or rights that constitute collateral or the perfection of any security interest. Such failure may result in the loss of the security interest in the collateral or the priority of the security interest in favor of the notes against third parties.
In the event of our bankruptcy, the ability of the holders of the notes to realize upon the collateral will be subject to certain bankruptcy law limitations and limitations under the intercreditor agreement.
The ability of holders of the notes to realize upon the collateral will be subject to certain bankruptcy law limitations in the event of our bankruptcy. Under federal bankruptcy law, secured creditors are prohibited from repossessing their security from a debtor in a bankruptcy case, or from disposing of security repossessed from such a debtor, without bankruptcy court approval, which may not be given. Moreover, applicable federal bankruptcy laws generally permit the debtor to continue to use and expend collateral, including cash collateral, and to provide liens senior to the collateral agent for the notes' liens to secure indebtedness incurred after the commencement of a bankruptcy case, provided that the secured creditor either consents or is given "adequate protection." "Adequate protection" could include cash payments or the granting of additional security, if and at such times as the presiding court in its discretion determines, for any diminution in the value of the collateral as a result of the stay of repossession or disposition of the collateral during the pendency of the bankruptcy case, the use of collateral (including cash collateral) and the incurrence of such senior indebtedness. However, pursuant to the terms of the intercreditor agreement, the holders of the notes will agree not to seek or accept "adequate protection" consisting of cash payments and will not object to the incurrence of additional indebtedness secured by liens senior to the collateral agent for the notes' liens in an aggregate principal amount, together with the aggregate principal amount of first-priority lien obligations, of up to $400 million. In view of the lack of a precise definition of the term "adequate protection" and the broad discretionary powers of a U.S. bankruptcy court, we cannot predict whether or when the collateral agent under the indenture for the notes could foreclose upon or sell the collateral, and as a result of the limitations under the intercreditor agreement, the holders of the notes will not be compensated for any delay in payment or loss of value of the collateral through the provision of "adequate protection," except to the extent of any grant of additional liens that are junior to the first-priority obligations.
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In addition to the waiver with respect to adequate protection set forth above, under the terms of the intercreditor agreement, the holders of the notes will also waive certain other important rights that secured creditors may be entitled to in a bankruptcy proceeding, as described in "Description of Notes—Security—Intercreditor Agreement." These waivers could adversely impact the ability of the holders to recover amounts owed to them in a bankruptcy proceeding.
The collateral securing the notes may be diluted under certain circumstances.
The collateral that will secure the notes will also secure obligations under the $300.0 million Revolving Credit Agreement. In addition, the collateral securing the notes will secure obligations under interest rate and currency agreements with lenders or their affiliates as permitted by the terms of the Revolving Credit Agreement. This collateral may secure additional senior indebtedness that the Company or certain of its subsidiaries incurs in the future, subject to restrictions on their ability to incur debt and liens under the Revolving Credit Agreement and the indenture governing the notes. Your rights to the collateral would be diluted by any increase in the indebtedness secured by this collateral.
Any future grant of collateral might be avoidable by a trustee in bankruptcy.
Any future grant of collateral in favor of the collateral agent for the benefit of the trustee might be avoidable by the grantor (as debtor in possession) or by its trustee in bankruptcy if certain events or circumstances exist or occur, including, among others, if the grantor is insolvent at the time of the grant, the grant permits the holders of the notes to receive a greater recovery than if the grant had not been given and a bankruptcy proceeding in respect of the grantor is commenced within 90 days following the grant or, in certain circumstances, a longer period. A substantial portion of the collateral will constitute inventory of real estate. As the inventory is sold and new inventory is acquired, the granting of liens on the new inventory will trigger a new 90 day "preference" period. It is possible, particularly during a time when our inventory is turning over quickly, that liens on a substantial portion of the collateral at any time may have been granted during the preceding 90 day period.
Corporate benefit laws and other limitations on the guarantees and security may adversely affect the validity and enforceability of the guarantees of the notes and security granted by the guarantors.
The guarantees of the notes by the guarantors and security granted by such guarantors provide the holders of the notes with a direct claim against the assets of the guarantors. Each of the guarantees and the amount recoverable under the security documents, however, will be limited to the maximum amount that can be guaranteed or secured by a particular guarantor without rendering the guarantee or security, as it relates to that guarantor, voidable or otherwise ineffective under applicable law. In addition, enforcement of any of these guarantees or security against any guarantor will be subject to certain defenses available to guarantors and security providers generally. These laws and defenses include those that relate to fraudulent conveyance or transfer, voidable preference, corporate purpose or benefit, preservation of share capital, thin capitalization and regulations or defenses affecting the rights of creditors generally. If one or more of these laws and defenses are applicable, a guarantor may have no liability or decreased liability under its guarantee or the security documents to which it is a party.
Federal and state laws allow courts, under specific circumstances, to void guarantees and grants of security and to require you to return payments received from guarantors.
Under U.S. federal bankruptcy law or comparable provisions of state fraudulent transfer laws, future creditors of any guarantor could void the issuance of the guarantees and the grant of security by
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the
guarantors or subordinate such obligations or liens to all of their other debts and liabilities if they were successful in establishing that:
The
measures of insolvency for purposes of determining whether a fraudulent conveyance occurred vary depending upon the laws of the relevant jurisdiction and upon the valuation
assumptions and methodology applied by the court. Generally, however, a company would be considered insolvent for purposes of the foregoing if:
We cannot assure you as to what standard a court would apply in order to determine whether a guarantor was "insolvent" as of the date its guarantee or grant was issued, and we cannot assure you that, regardless of the method of valuation, a court would not determine that any guarantors were insolvent on that date. The subsidiary guarantees could be subject to the claim that, since the guarantees and grant of security were incurred for the benefit of Hovnanian and the Issuer, and only indirectly for the benefit of the other guarantors, the obligations of the guarantors thereunder were incurred for less than reasonably equivalent value or fair consideration.
Federal and state environmental laws may decrease the value of the collateral securing the notes and may result in you being liable for environmental cleanup costs at our facilities.
The notes and guarantees are secured by liens on real property that may be subject to both known and unforeseen environmental risks, and these risks may reduce or eliminate the value of the real property pledged as collateral for the notes or adversely affect the ability of the debtor to repay the notes. See "Homebuilders are subject to a number of federal, local, state and foreign laws and regulations concerning the development of land, the home building, sales and customer financing processes and protection of the environment, which can cause us to incur delays and costs associated with compliance and which can prohibit or restrict our activity in some regions or areas" and "Business—Regulation and Environmental Matters" in our Annual Report on Form 10-K for the year ended October 31, 2007, which is incorporated by reference herein.
Moreover, under some federal and state environmental laws, a secured lender may in some situations become subject to its debtor's environmental liabilities, including liabilities arising out of contamination at or from the debtor's properties. Such liability can arise before foreclosure, if the secured lender becomes sufficiently involved in the management of the affected facility. Similarly, when a secured lender forecloses and takes title to a contaminated facility or property, the lender could become subject to such liabilities, depending on the circumstances. Before taking some actions, the collateral agent for the notes may request that you provide for its reimbursement for any of its costs,
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expenses and liabilities. Cleanup costs could become a liability of the collateral agent for the notes, and, if you agreed to provide for the collateral agent's costs, expenses and liabilities, you could be required to help repay those costs. You may agree to indemnify the collateral agent for the notes for its costs, expenses and liabilities before you or the collateral agent knows what those amounts ultimately will be. If you agreed to this indemnification without sufficient limitations, you could be required to pay the collateral agent an amount that is greater than the amount you paid for the notes. In addition, rather than acting through the collateral agent, you may in some circumstances act directly to pursue a remedy under the indenture. If you exercise that right, you could be considered to be a lender and be subject to the risks discussed above.
Exercise of Change of Control Rights—We may not have the ability to raise funds necessary to finance any change of control offer required by the indenture.
If a change of control occurs as described in the section "Description of Notes—Certain covenants" we would be required to offer to purchase your notes at 101% of their principal amount together with all accrued and unpaid interest, if any, to the date of purchase. If a purchase offer obligation arises under the indenture governing your notes, a change of control will have also occurred under the indentures governing our other debt. Our Revolving Credit Agreement will provide that certain change of control events will constitute a default and could result in the acceleration of the indebtedness outstanding thereunder. Any of our future debt agreements may contain similar restrictions and provisions. If a purchase offer were required under the indentures for our debt, we may not have sufficient funds to pay the purchase price for all debt that we are required to repurchase or repay. We do not currently have sufficient funds available to purchase all of such outstanding debt.
An active trading market may not develop for the exchange notes.
We are offering the exchange notes to the holders of the outstanding notes. The exchange notes are a new issue of securities. There is no active public trading market for the exchange notes. We do not intend to apply for listing of the exchange notes on a security exchange. The initial purchasers of the outstanding notes have informed us that they intend to make a market in the exchange notes. However, the initial purchasers may cease their market-making at any time. We cannot assure you that an active trading market will develop for the exchange notes or that the exchange notes will trade as one class with the outstanding notes. In addition, the liquidity of the trading market in the exchange notes and the market prices quoted for the exchange notes may be adversely affected by changes in the overall market for this type of security and by changes in our financial performance or prospects or in the prospects for companies in our industry generally. As a consequence, an active trading market may not develop for your exchange notes, you may not be able to sell your exchange notes, or, even if you can sell your exchange notes, you may not be able to sell them at an acceptable price.
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RATIO OF EARNINGS TO FIXED CHARGES
For purposes of computing the ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes and income or loss from equity investees, plus fixed charges and distributed income of equity investees, less interest capitalized. Fixed charges consist of all interest incurred plus the amortization of debt issuance costs and bond discounts.
The following table sets forth the ratio of earnings to fixed charges for Hovnanian for each of the periods indicated.
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Year Ended October 31, | |||||||||||||||||
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Nine Months Ended July 31, 2008 |
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2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||
Ratio of earnings to fixed charges |
(a) | (a) | 2.0 | 7.8 | 6.3 | 6.7 | |||||||||||||
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The exchange offer is intended to satisfy our obligations under the registration rights agreement that we entered into in connection with the private offering of the outstanding notes. We will not receive any cash proceeds from the issuance of the exchange notes in the exchange offer. As consideration for issuing the exchange notes as contemplated in this prospectus, we will receive in exchange a like principal amount of outstanding notes, the terms of which are identical in all material respects to the exchange notes, except that the exchange notes will be registered under the Securities Act and will not contain terms with respect to transfer restrictions or additional interest upon a failure to fulfill certain of our obligations under the registration rights agreement. The outstanding notes that are surrendered in exchange for the exchange notes will be retired and cancelled and cannot be reissued. As a result, the issuance of the exchange notes will not result in any increase or decrease in our capitalization.
We offered the outstanding notes as part of a refinancing in which we (1) used a portion of the net proceeds from the private offering of the outstanding notes to repay amounts outstanding under our revolving credit facility and (2) entered into an amendment to our revolving credit agreement and decreased commitments thereunder from $900 million to $300 million. We used the remainder of the net proceeds from the private offering of the outstanding notes for general corporate purposes. Availability under our revolving credit facility equals the lesser of $300 million or the amount available pursuant to our borrowing base and our sub-limit for revolving liens is $100 million. Amounts available under the revolving credit facility may be borrowed, repaid and reborrowed, and letters of credit may be issued until the maturity of our revolving credit facility on May 31, 2011 and may be used for general corporate purposes and working capital.
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The following table sets forth our capitalization as of July 31, 2008. This table should be read in conjunction with our consolidated financial statements and the related notes thereto and the other financial information included and incorporated by reference in this prospectus.
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As of July 31, 2008 |
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(unaudited) (In thousands) |
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Homebuilding Cash and Cash Equivalents, Excluding Restricted Cash |
$ | 677,213 | |||||
Debt(1): |
|||||||
Revolving Credit Facility |
$ | — | |||||
Nonrecourse Land Mortgages |
4,824 | ||||||
Nonrecourse Mortgages Secured by Operating Property |
22,492 | ||||||
111/2% Senior Secured Notes due 2013 |
594,524 | ||||||
8% Senior Notes due 2012 |
99,604 | ||||||
61/2% Senior Notes due 2014 |
215,000 | ||||||
63/8% Senior Notes due 2014 |
150,000 | ||||||
61/4% Senior Notes due 2015 |
200,000 | ||||||
61/4% Senior Notes due 2016 |
296,346 | ||||||
71/2% Senior Notes due 2016 |
300,000 | ||||||
85/8% Senior Notes due 2017 |
250,000 | ||||||
6% Senior Subordinated Notes due 2010 |
100,000 | ||||||
87/8% Senior Subordinated Notes due 2012 |
150,000 | ||||||
73/4% Senior Subordinated Notes due 2013 |
150,000 | ||||||
Total Debt |
$ | 2,532,790 | |||||
Stockholders' Equity: |
|||||||
Preferred Stock, $.01 par value; 100,000 Shares Authorized; 5,600 Shares of 7.625% Series A Preferred Stock issued at July 31, 2008 with a liquidation preference of $140,000(2) |
$ | 135,299 | |||||
Common Stock, Class A, $.01 par value; 200,000,000 Shares Authorized; 73,796,543 Shares issued at July 31, 2008 (including 11,694,720 Shares Held in Treasury at July 31, 2008) |
738 | ||||||
Common Stock, Class B, $.01 par value (Convertible to Class A at time of sale); 30,000,000 Shares Authorized; 15,335,394 Shares issued at July 31, 2008 (including 691,748 Shares Held in Treasury at July 31, 2008) |
153 | ||||||
Paid in Capital |
415,797 | ||||||
Retained Earnings |
341,164 | ||||||
Treasury Stock—at Cost |
(115,257 | ) | |||||
Total Stockholders' Equity |
$ | 777,894 | |||||
Total Capitalization |
$ | 3,310,684 | |||||
32
SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
The following selected historical consolidated financial data for each of the fiscal years ended October 31, 2007, 2006, 2005, 2004 and 2003 have been derived from the audited consolidated financial statements of Hovnanian Enterprises, Inc.
The following selected historical consolidated financial data for the nine month periods ended July 31, 2008 and 2007 have been derived from the unaudited condensed consolidated financial statements of Hovnanian Enterprises, Inc. The unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals and deferrals, which management considers necessary for a fair presentation of the consolidated financial position and the results of operations for these periods. Operating results for the nine month period ended July 31, 2008 are not necessarily indicative of the results that may be expected for the entire year ending October 31, 2008. Per common share data and weighted average number of common shares outstanding reflect all stock splits.
You should read the following data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2007, and in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2008, which are incorporated by reference herein, and with the consolidated financial statements, related notes, and other financial information included and incorporated by reference herein.
| |
Nine Months Ended July 31, | Year Ended October 31, | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
| |
(unaudited) |
|
|
|
|
|
|||||||||||||||||
| |
(Dollars in thousands, except per share data) |
||||||||||||||||||||||
Income Statement Data |
|||||||||||||||||||||||
Revenues |
$ | 2,586,681 | $ | 3,407,052 | $ | 4,798,921 | $ | 6,148,235 | $ | 5,348,417 | $ | 4,153,890 | $ | 3,201,944 | |||||||||
Expenses |
3,288,910 | 3,638,313 | 5,417,664 | 5,930,514 | 4,602,871 | 3,608,909 | 2,790,339 | ||||||||||||||||
(Loss) income from unconsolidated joint ventures |
(9,356 | ) | (2,934 | ) | (28,223 | ) | 15,385 | 35,039 | 4,791 | (87 | ) | ||||||||||||
(Loss) income before income taxes |
(711,585 | ) | (234,195 | ) | (646,966 | ) | 233,106 | 780,585 | 549,772 | 411,518 | |||||||||||||
State and federal income taxes (benefit)/provision |
(37,454 | ) | (73,669 | ) | (19,847 | ) | 83,573 | 308,738 | 201,091 | 154,138 | |||||||||||||
Net (loss) income |
(674,131 | ) | (160,526 | ) | (627,119 | ) | 149,533 | 471,847 | 348,681 | 257,380 | |||||||||||||
Less: preferred stock dividends |
— | 8,006 | 10,674 | 10,675 | 2,758 | — | — | ||||||||||||||||
Net (loss) income available to common stockholders |
$ | (674,131 | ) | $ | (168,532 | ) | $ | (637,793 | ) | $ | 138,858 | $ | 469,089 | $ | 348,681 | $ | 257,380 | ||||||
Per Share Data |
|||||||||||||||||||||||
Basic: |
|||||||||||||||||||||||
(Loss) net income per common share |
$ | (9.98 | ) | $ | (2.67 | ) | $ | (10.11 | ) | $ | 2.21 | $ | 7.51 | $ | 5.63 | $ | 4.16 | ||||||
Weighted average number of common shares outstanding |
67,574 | 63,036 | 63,079 | 62,822 | 62,490 | 61,892 | 61,920 | ||||||||||||||||
Assuming Dilution: |
|||||||||||||||||||||||
(Loss) income per common share |
$ | (9.98 | ) | $ | (2.67 | ) | $ | (10.11 | ) | $ | 2.14 | $ | 7.16 | $ | 5.35 | $ | 3.93 | ||||||
Weighted average number of common shares outstanding |
67,574 | 63,036 | 63,079 | 64,838 | 65,549 | 65,133 | 65,538 | ||||||||||||||||
Balance sheet data |
|||||||||||||||||||||||
Total assets |
$ | 4,101,708 | $ | 5,362,762 | $ | 4,540,548 | $ | 5,480,035 | $ | 4,726,138 | $ | 3,156,267 | $ | 2,332,371 | |||||||||
Mortgages, term loans, revolving credit agreements and notes payable |
$ | 110,458 | $ | 636,796 | $ | 410,298 | $ | 319,943 | $ | 271,868 | $ | 354,055 | $ | 326,216 | |||||||||
Senior secured notes, senior notes and senior subordinated notes |
$ | 2,505,474 | $ | 2,050,628 | $ | 1,910,600 | $ | 2,049,778 | $ | 1,498,739 | $ | 902,737 | $ | 687,166 | |||||||||
Stockholders' equity |
$ | 777,894 | $ | 1,785,734 | $ | 1,321,803 | $ | 1,942,163 | $ | 1,791,357 | $ | 1,192,394 | $ | 819,712 | |||||||||
33
General
K. Hovnanian hereby offers to exchange a like principal amount of exchange notes for any or all outstanding notes on the terms and subject to the conditions set forth in this prospectus and accompanying letter of transmittal. We refer to this offer as the "exchange offer." You may tender some or all of your outstanding notes pursuant to the exchange offer.
As of the date of this prospectus, $600,000,000 aggregate principal amount of the outstanding notes is outstanding. This prospectus, together with the letter of transmittal, is first being sent to all holders of outstanding notes known to us on or about , 2008. K. Hovnanian's obligation to accept outstanding notes for exchange pursuant to the exchange offer is subject to certain conditions set forth under "—Conditions to the Exchange Offer" below. K. Hovnanian currently expects that each of the conditions will be satisfied and that no waivers will be necessary.
Purpose and Effect of the Exchange Offer
We entered into a registration rights agreement with the initial purchasers of the outstanding notes in which we agreed, under certain circumstances, to file a registration statement relating to an offer to exchange the outstanding notes for exchange notes by September 24, 2008. We also agreed to use our reasonable best efforts to cause such offer to be consummated on or prior to 30 business days after the registration statement has become effective but in no event later than 40 business days thereafter. The exchange notes will have terms substantially identical to the terms of the outstanding notes, except that the exchange notes will not contain terms with respect to transfer restrictions or additional interest upon a failure to fulfill certain of our obligations under the registration rights agreement. The outstanding notes were issued on May 27, 2008.
Under
the circumstances set forth below, we will use our reasonable best efforts to cause the Securities and Exchange Commission, or the SEC, to declare effective a shelf registration
statement with respect to the resale of the outstanding notes within the time periods specified in the registration rights
agreement and to keep the shelf registration statement effective at least one year after the effective date of the shelf registration statement or such shorter period as will terminate when all
securities covered by such shelf registration statement have been sold pursuant thereto. These circumstances include:
If we fail to comply with certain obligations under the registration rights agreement, we will be required to pay additional interest to holders of the outstanding notes and the exchange notes required to be registered on a shelf registration statement. Please read the section "Exchange Offer; Registration Rights" for more details regarding the registration rights agreement.
34
Each
holder of outstanding notes that wishes to exchange their outstanding notes for exchange notes in the exchange offer will be required to make the following written
representations:
Each broker-dealer that receives exchange notes for its own account in exchange for outstanding notes, where the broker-dealer acquired the outstanding notes as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes. See "Plan of Distribution."
Resale of Exchange Notes
Based on interpretations by the staff of the SEC set forth in no-action letters issued to third parties referred to below,
we believe that you may resell or otherwise transfer exchange notes issued in the exchange offer without complying with the registration and prospectus delivery provisions of the Securities Act,
if:
If
you are an affiliate of K. Hovnanian or any guarantor, or are engaged in, or intend to engage in, or have any arrangement or understanding with any person to participate in, a
distribution of the exchange notes, or are not acquiring the exchange notes in the ordinary course of your business:
This prospectus may be used for an offer to resell, for resale or for other retransfer of exchange notes only as specifically set forth in this prospectus. With regard to broker-dealers, only broker-dealers that acquired the outstanding notes as a result of market-making activities or other trading activities may participate in the exchange offer. Each broker-dealer that receives exchange notes for its own account in exchange for outstanding notes, where such outstanding notes were acquired by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of the exchange notes. Please read "Plan of Distribution" for more details regarding the transfer of exchange notes.
35
Terms of the Exchange Offer
On the terms and subject to the conditions set forth in this prospectus and in the accompanying letter of transmittal, we will accept for exchange in the exchange offer outstanding notes that are validly tendered and not validly withdrawn prior to the expiration date. Outstanding notes may only be tendered in denominations of $2,000 and higher integral multiples of $1,000. We will issue $2,000 principal amount of exchange notes in exchange for each $2,000 principal amount of outstanding notes surrendered in the exchange offer.
The form and terms of the exchange notes will be substantially identical to the form and terms of the outstanding notes, except that the exchange notes will be registered under the Securities Act and will not contain terms with respect to transfer restrictions or additional interest upon a failure to fulfill certain of our obligations under the registration rights agreement. The exchange notes will evidence the same debt as the outstanding notes. The exchange notes will be issued under and entitled to the benefits of the same indenture under which the outstanding notes were issued and the exchange notes and the outstanding notes will constitute a single class and series of notes for all purposes under the indenture. For a description of the indenture, see "Description of Notes."
The exchange offer is not conditioned upon any minimum aggregate principal amount of outstanding notes being tendered for exchange.
As of the date of this prospectus, $600,000,000 aggregate principal amount of the outstanding notes is outstanding. This prospectus and a letter of transmittal are being sent to all registered holders of outstanding notes. There will be no fixed record date for determining registered holders of outstanding notes entitled to participate in the exchange offer.
We intend to conduct the exchange offer in accordance with the provisions of the registration rights agreement, the applicable requirements of the Securities Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations of the SEC. Outstanding notes that are not tendered for exchange in the exchange offer will remain outstanding and continue to accrue interest and will be entitled to the rights and benefits that such holders have under the indenture relating to such holders' outstanding notes, except for any rights under the registration rights agreement that by their terms terminate upon the consummation of the exchange offer.
We will be deemed to have accepted for exchange properly tendered outstanding notes when we have given notice of the acceptance to the exchange agent. The exchange agent will act as agent for the tendering holders for the purposes of receiving the exchange notes from us and delivering exchange notes to holders. Subject to the terms of the registration rights agreement, we expressly reserve the right to amend or terminate the exchange offer and to refuse to accept outstanding notes not previously accepted upon the occurrence of any of the conditions specified below under "—Conditions to the Exchange Offer."
Holders who tender outstanding notes in the exchange offer will not be required to pay brokerage commissions or fees or, subject to the instructions in the letter of transmittal, transfer taxes with respect to the exchange of outstanding notes. We will pay all charges and expenses, other than certain applicable taxes described below, in connection with the exchange offer. It is important that you read "—Fees and Expenses" below for more details regarding fees and expenses incurred in the exchange offer.
Expiration Date; Extensions, Amendments
As used in this prospectus, the term "expiration date" means 5:00 p.m., New York City time, on , 2008. However, if we, in our sole discretion, extend the period of time for which the exchange offer is open, the term "expiration date" will mean the latest time and date to which we shall have extended the expiration of the exchange offer.
36
To extend the period of time during which the exchange offer is open, we will notify the exchange agent of any extension, followed by notification to the registered holders of the outstanding notes no later than 9:00 a.m., New York City time, on the business day after the previously scheduled expiration date.
We
reserve the right, in our sole discretion:
Any delay in acceptance, extension, termination or amendment will be followed as promptly as practicable by notice to the registered holders of the outstanding notes. If we amend the exchange offer in a manner that we determine to constitute a material change, we will promptly disclose the amendment in a manner reasonably calculated to inform the holders of outstanding notes of that amendment.
Conditions to the Exchange Offer
Despite any other term of the exchange offer, we will not be required to accept for exchange, or to issue exchange notes in exchange
for, any outstanding notes, and we may terminate or amend the exchange offer as provided in this prospectus before accepting any outstanding notes for exchange
if:
In
addition, we will not be obligated to accept for exchange the outstanding notes of any holder that has not made to us:
We expressly reserve the right at any time or at various times to extend the period of time during which the exchange offer is open. Consequently, we may delay acceptance of any outstanding notes by giving notice of such extension to their holders. During any such extensions, all outstanding notes previously tendered will remain subject to the exchange offer and we may accept them for exchange. We will return any outstanding notes that we do not accept for exchange for any reason without expense to their tendering holders as promptly as practicable after the expiration or termination of the exchange offer.
37
We expressly reserve the right to amend or terminate the exchange offer and to reject for exchange any outstanding notes not previously accepted for exchange upon the occurrence of any of the conditions of the exchange offer specified above. We will give notice of any extension, amendment, non-acceptance or termination to the holders of the outstanding notes as promptly as practicable. In the case of any extension, such notice will be issued no later than 9:00 a.m., New York City time, on the business day after the previously scheduled expiration date.
These conditions are for our sole benefit, and we may assert them regardless of the circumstances that may give rise to them or waive them in whole or in part at any or at various times in our sole discretion. If we fail at any time to exercise any of the foregoing rights, this failure will not constitute a waiver of such right. Each such right will be deemed an ongoing right that we may assert at any time or at various times.
Procedures for Tendering
Only a holder of outstanding notes may tender their outstanding notes in the exchange offer. To tender in the exchange offer, a holder
must comply with either of the following:
In
addition, either:
To be tendered effectively, the exchange agent must receive any physical delivery of the letter of transmittal and other required documents at the address set forth below under "—Exchange Agent" prior to the expiration date.
A tender to us that is not withdrawn prior to the expiration date constitutes an agreement between us and the tendering holder upon the terms and subject to the conditions described in this prospectus and in the letter of transmittal.
The method of delivery of outstanding notes, letter of transmittal, and all other required documents to the exchange agent is at the holder's election and risk. Rather than mail these items, we recommend that holders use an overnight or hand delivery service. In all cases, holders should allow sufficient time to assure timely delivery to the exchange agent before the expiration date. Holders should not send letters of transmittal or certificates representing outstanding notes to us. Holders may request that their respective brokers, dealers, commercial banks, trust companies or other nominees effect the above transactions for them.
If you are a beneficial owner whose outstanding notes are held in the name of a broker, dealer, commercial bank, trust company, or other nominee and you wish to participate in the exchange offer, you should promptly contact such party and instruct such person to tender outstanding notes on your behalf.
38
You must make these arrangements or follow these procedures before completing and executing the letter of transmittal and delivering your outstanding notes.
Signatures
on the letter of transmittal or a notice of withdrawal, as the case may be, must be guaranteed by a member firm of a registered national securities exchange or of the NASD, a
commercial bank or trust company having an office or correspondent in the United States or another "Eligible Guarantor Institution" within the meaning of Rule 17Ad-15 under the
Exchange Act unless the outstanding notes surrendered for exchange are tendered:
If the letter of transmittal is signed by a person other than the registered holder of any outstanding notes listed on the outstanding notes, such outstanding notes must be endorsed or accompanied by a properly completed bond power. The bond power must be signed by the registered holder as the registered holder's name appears on the outstanding notes and an Eligible Guarantor Institution must guarantee the signature on the bond power.
If the letter of transmittal or any certificates representing outstanding notes, or bond powers are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations, or others acting in a fiduciary or representative capacity, those persons should also indicate when signing and, unless waived by us, they should also submit evidence satisfactory to us of their authority to so act.
Book-Entry Delivery Procedures
Promptly after the date of this prospectus, the exchange agent will establish an account with respect to the outstanding notes at DTC for purposes of the exchange offer. Any financial institution that is a participant in DTC's systems may make book-entry delivery of the outstanding notes by causing DTC to transfer those outstanding notes into the exchange agent's account at DTC in accordance with DTC's procedures for such transfer. To be timely, book-entry delivery of outstanding notes requires receipt of a confirmation of a book-entry transfer, a "book-entry confirmation," prior to the expiration date. In addition, although delivery of outstanding notes may be effected through book-entry transfer into the exchange agent's account at DTC, the letter of transmittal or a manually signed facsimile thereof, together with any required signature guarantees and any other required documents, or an "agent's message," as defined below, in connection with a book-entry transfer, must, in any case, be delivered or transmitted to and received by the exchange agent at its address set forth on the cover page of the letter of transmittal prior to the expiration date to receive exchange notes for tendered outstanding notes, or the guaranteed delivery procedure described below must be complied with. Tender will not be deemed made until such documents are received by the exchange agent. Delivery of documents to DTC does not constitute delivery to the exchange agent. Holders of outstanding notes who are unable to deliver confirmation of the book-entry tender of their outstanding notes into the exchange agent's account at DTC or all other documents required by the letter of transmittal to the exchange agent on or prior to the expiration date must tender their outstanding notes according to the guaranteed delivery procedures described below.
Tender of Outstanding Notes Held Through The Depository Trust Company
The exchange agent and DTC have confirmed that any financial institution that is a participant in DTC's system may use DTC's Automated Tender Offer Program to tender. Participants in the program may, instead of physically completing and signing the letter of transmittal and delivering it to the exchange agent, electronically transmit their acceptance of the exchange offer by causing DTC to transfer the outstanding notes to the exchange agent in accordance with DTC's Automated Tender
39
Offer
Program procedures for transfer. DTC will then send an agent's message to the exchange agent. The term "agent's message" means a message transmitted by DTC, received by the exchange agent and
forming part of the book-entry confirmation, which states that:
Acceptance of Exchange Notes
In all cases, we will issue exchange notes for outstanding notes that we have accepted for exchange under the exchange offer only after
the exchange agent timely receives:
By
tendering outstanding notes pursuant to the exchange offer, each holder will represent to us that, among other things:
If
the holder is an affiliate of K. Hovnanian or any guarantor, or is engaging in, or intends to engage in, or has any arrangement or understanding with any person to participate in, a
distribution of the exchange notes, or is not acquiring the exchange notes in the ordinary course of its business:
In addition, each broker-dealer that is to receive exchange notes for its own account in exchange for outstanding notes must represent that such outstanding notes were acquired by that broker-dealer as a result of market-making activities or other trading activities and must acknowledge that it will deliver a prospectus that meets the requirements of the Securities Act in connection with any resale of the exchange notes. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. See "Plan of Distribution."
40
We will interpret the terms and conditions of the exchange offer, including the letter of transmittal and the instructions to the letter of transmittal, and will resolve all questions as to the validity, form, eligibility, including time of receipt, and acceptance of outstanding notes tendered for exchange. Our determinations in this regard will be final and binding on all parties. We reserve the absolute right to reject any and all tenders of any particular outstanding notes not properly tendered or to not accept any particular outstanding notes if the acceptance might, in our or our counsel's judgment, be unlawful. We also reserve the absolute right to waive any defects or irregularities or conditions of the exchange offer as to any particular outstanding notes either before or after the expiration date, including the right to waive the ineligibility of any holder who seeks to tender outstanding notes in the exchange offer.
Unless waived, any defects or irregularities in connection with tenders of outstanding notes for exchange must be cured within a reasonable period of time as we determine. Neither we, the exchange agent, nor any other person will be under any duty to give notification of any defect or irregularity with respect to any tender of outstanding notes for exchange, nor will any of them incur any liability for any failure to give notification. Any outstanding notes received by the exchange agent that are not properly tendered and as to which the irregularities have not been cured or waived will be returned by the exchange agent to the tendering holder, without cost to the holder, unless otherwise provided in the letter of transmittal, as soon as practicable after the expiration date.
Guaranteed Delivery Procedures
Holders wishing to tender their outstanding notes but whose outstanding notes are not immediately available or who cannot deliver their
outstanding notes, the letter of transmittal or any other required documents to the exchange agent or comply with the applicable procedures under DTC's Automatic Tender Offer Program prior to the
expiration date may still tender if:
Withdrawal Rights
Except as otherwise provided in this prospectus, holders of outstanding notes may withdraw their tender of outstanding notes at any time prior to 5:00 p.m., New York City time, on the expiration date.
41
For
a withdrawal to be effective:
Any
notice of withdrawal must:
If
certificates for outstanding notes have been delivered or otherwise identified to the exchange agent, then, prior to the release of such certificates, the withdrawing holder must also
submit:
If outstanding notes have been tendered pursuant to the procedures for book-entry transfer described above, any notice of withdrawal must specify the name and number of the account at DTC to be credited with the withdrawn outstanding notes and otherwise comply with the procedures of the facility. We will determine all questions as to the validity, form, and eligibility, including time of receipt, of notices of withdrawal, and our determination will be final and binding on all parties. Any outstanding notes so withdrawn will be deemed not to have been validly tendered for exchange for purposes of the exchange offer. Any outstanding notes that have been tendered for exchange but that are not exchanged for any reason will be returned to their holder, without cost to the holder or, in the case of book-entry transfer, will be credited to an account maintained with DTC, as soon as practicable after withdrawal, rejection of tender or termination of the exchange offer. Properly withdrawn outstanding notes may be retendered by following the procedures described under "—Procedures for Tendering" above at any time on or prior to the expiration date.
Exchange Agent
Wilmington Trust Company has been appointed as the exchange agent for the exchange offer. Wilmington Trust Company also acts as trustee under the indenture governing the outstanding notes, which is the same indenture that will govern the exchange notes. You should direct all executed letters of transmittal and all questions and requests for assistance, for additional copies of this prospectus or
42
the letter of transmittal, or for notices of guaranteed delivery to the exchange agent addressed as follows:
Delivery to: Wilmington Trust Company, Exchange Agent
| By Mail: | By Overnight Mail or Courier Delivery: | By Hand: | ||
| Wilmington Trust Company Rodney Square North 1100 North Market Street Wilmington, DE 19890-1626 Attn: Corporate Trust Operations |
Wilmington Trust Company Rodney Square North 1100 North Market Street Wilmington, DE 19890-1626 Attn: Corporate Trust Operations |
Wilmington Trust Company Rodney Square North 1100 North Market Street Wilmington, DE 19890-1626 Attn: Corporate Trust Operations |
||
| For Facsimile Transmission: (302) 636-4139 |
||||
| Confirm By Telephone: (302) 636-6181 |
||||
| For Information: (302) 636-4184 |
IF YOU DELIVER THE LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR TRANSMIT INSTRUCTIONS VIA FACSIMILE OTHER THAN AS SET FORTH ABOVE, THAT DELIVERY OR THOSE INSTRUCTIONS WILL NOT BE EFFECTIVE.
Fees and Expenses
We will bear the expenses of soliciting tenders. The principal solicitation is being made by mail by the exchange agent. We may make additional solicitations by facsimile, telephone or in person by our officers and regular employees and our affiliates.
We have not retained any dealer-manager in connection with the exchange offer and will not make any payment to broker-dealers or others for soliciting acceptances of the exchange offer. We will, however, pay the exchange agent reasonable and customary fees for its services and reimburse it for its related, reasonable out-of-pocket expenses.
We
will pay the estimated cash expenses to be incurred in connection with the exchange offer. The expenses are estimated in the aggregate to be approximately $190,000. They
include:
Accounting Treatment
We will record the exchange notes in our accounting records at the same carrying value as the outstanding notes, which is the aggregate principal amount as reflected in our accounting records on the date of exchange. Accordingly, we will not recognize any gain or loss for accounting purposes upon the consummation of the exchange offer. We will capitalize the expenses of the exchange offer and amortize them over the life of the notes.
43
Transfer Taxes
We will pay all transfer taxes, if any, applicable to the exchange of outstanding notes under the exchange offer. The tendering holder,
however, will be required to pay any transfer taxes, whether imposed on the registered holder or any other person, if:
If satisfactory evidence of payment of such taxes is not submitted with the letter of transmittal, the amount of such transfer taxes will be billed to that tendering holder.
Holders who tender their outstanding notes for exchange will not be required to pay any transfer taxes. However, holders who instruct us to register exchange notes in the name of, or request that outstanding notes not tendered or not accepted in the exchange offer be returned to, a person other than the registered tendering holder will be required to pay any applicable transfer tax.
Consequences of Failure to Exchange
Holders of outstanding notes who do not exchange their outstanding notes for exchange notes under the exchange offer will remain
subject to the restrictions on transfer of such outstanding notes:
In
general, you may not offer or sell the outstanding notes unless they are registered under the Securities Act or if the offer or sale is exempt from registration under the Securities
Act and applicable state securities laws. Except as required by the registration rights agreement, we do not intend to register resales of the outstanding notes under the Securities Act. Based on
interpretations of the staff of the SEC, exchange notes issued pursuant to the exchange offer may be offered for resale, resold or otherwise transferred by their holders without compliance with the
registration and prospectus delivery provisions of the Securities Act, provided that:
Any
holder who tenders outstanding notes in the exchange offer for the purpose of participating in a distribution of the exchange notes:
44
interpreted
in the SEC's letter to Shearman & Sterling (available July 2, 1993), or similar no-action letters; and
Other
Participating in the exchange offer is voluntary, and you should carefully consider whether to accept. You are urged to consult your financial and tax advisors in making your own decision on what action to take.
We may in the future seek to acquire untendered outstanding notes in open market or privately negotiated transactions, through subsequent exchange offers or otherwise. We have no present plans to acquire any outstanding notes that are not tendered in the exchange offer or to file a registration statement to permit resales of any untendered outstanding notes.
45
In this section, references to the "Company" mean Hovnanian Enterprises, Inc., a Delaware corporation, and do not include K. Hovnanian Enterprises, Inc. or any of its subsidiaries, and references to the "Issuer," "us," "we" or "our" mean K. Hovnanian Enterprises, Inc., a California corporation. References to "Notes" in this section are references to the outstanding 111/2% Senior Secured Notes due 2013 and the exchange 111/2% Senior Secured Notes due 2013 offered hereby, collectively.
The Issuer issued the outstanding notes, and will issue the exchange notes described in this prospectus, under an indenture (the "Indenture"), dated as of May 27, 2008, among the Issuer, the Guarantors and Wilmington Trust Company (as successor trustee, to Deutsche Bank National Trust Company, a national banking association), as trustee (the "Trustee"). The following is a summary of the material terms and provisions of the Notes. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act"), as in effect on the date of the Indenture. The Notes are subject to all such terms, and prospective participants in the exchange offer should refer to the Indenture and the Trust Indenture Act for a statement of such terms. The form and terms of the exchange notes and the outstanding notes are identical in all material respects, except that the exchange notes will be registered under the Securities Act and will not contain terms with respect to transfer restrictions or additional interest upon a failure to fulfill certain of our obligations under the registration rights agreement.
This description of the Notes contains definitions of terms, including those defined under the caption "—Definitions of certain terms used in the Indenture." Capitalized terms that are used but not otherwise defined herein have the meanings assigned to them in the Indenture.
Any outstanding notes that remain outstanding after consummation of this exchange offer and the exchange notes will constitute a single series of debt securities under the Indenture. Holders of outstanding notes who do not exchange their notes in this exchange offer will vote together with the holders of exchange notes for all relevant purposes under the Indenture. Accordingly, when determining whether the required holders have given notice, consent or waiver or taken any other action permitted under the Indenture, any outstanding notes that are not exchanged pursuant to the exchange offer will be aggregated with the exchange notes. All references herein to specified percentages in aggregate principal amount of Notes outstanding shall be deemed to mean, at any time after this exchange offer is consummated, percentages in aggregate principal amount of outstanding notes and exchange notes outstanding.
General
The Notes will bear interest from the most recent date to which interest has been paid or, if no interest has been paid, from May 27, 2008 at the rate per annum shown on the cover page of this prospectus. Interest is payable semi-annually on May 1 and November 1 of each year, commencing November 1, 2008, to Holders of record at the close of business on April 15 or October 15, as the case may be, immediately preceding each such interest payment date. The Notes will mature on May 1, 2013, and will be issued in denominations of $2,000 and higher integral multiples of $1,000. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.
The Indenture limits the principal amount of securities that the Issuer may issue thereunder to the amount offered hereby.
The outstanding notes are, and the exchange notes will be, guaranteed by the Company and each of the Guarantors (together, the "Guarantors") pursuant to the Guarantees (the "Guarantees") described below.
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Ranking
The outstanding notes are, and the exchange notes will be, general secured obligations of the Issuer and rank senior in right of payment to all existing and future Indebtedness of the Issuer that is, by its terms, expressly subordinated in right of payment to the Notes and pari passu in right of payment with all existing and future Indebtedness of the Issuer that is not so subordinated, effectively senior to all unsecured Indebtedness to the extent of the value of the Collateral referred to below and effectively junior to any obligations of the Issuer that are either (i) secured by a Lien on the Collateral (as defined below) that is senior or prior to the second-priority Liens securing the Notes, including the first-priority Liens securing obligations under the Revolving Credit Agreement referred to below, and potentially any Permitted Liens, or (ii) secured by assets that are not part of the Collateral securing the Notes, in each case to the extent of the value of the assets securing such obligations. Under specified circumstances, the Issuer may be released from its obligations under the Notes and the Indenture. See "—Condition for Release of the Issuer." The Guarantees of the outstanding notes are, and of the exchange notes will be, general secured obligations of the Guarantors and will rank senior in right of payment to all existing and future Indebtedness of the Guarantors that is, by its terms, expressly subordinated in right of payment to the Guarantees and pari passu in right of payment with all existing and future Indebtedness of the Guarantors that is not so subordinated, effectively senior to all unsecured Indebtedness of the Guarantors to the extent of the value of the Collateral and effectively junior to any obligations of any Guarantor that are either (i) secured by a Lien on the Collateral that is senior or prior to the second-priority Liens securing the Guarantees, including the first-priority Liens securing obligations of the guarantors under the Revolving Credit Agreement, and potentially any Permitted Liens, or (ii) secured by assets that are not part of the Collateral securing the Notes, in each case, to the extent of the value of the assets securing such Indebtedness.
At July 31, 2008, the Issuer and the Guarantors had approximately $627.3 million of secured Indebtedness outstanding, including the outstanding notes, $1,515.0 million of senior unsecured notes and $400.0 million senior subordinated notes. In addition, at July 31, 2008 the aggregate outstanding face amount of letters of credit under the Revolving Credit Agreement was $219.7 million and there were no outstanding revolving loans.
Security
General
The Notes will be secured by second-priority Liens (the "Second-Priority Liens") granted by the Issuer, the existing Guarantors and any future Guarantor on substantially all of assets of the Issuer and the Guarantors (whether now owned or hereafter arising or acquired) to the extent such assets secure obligations under the Revolving Credit Agreement or other First-Priority Lien Obligations and subject to certain Permitted Liens and encumbrances described in the Security Documents (collectively, the "Collateral").
The Collateral will not include (collectively, the "Excluded Property") (a) any pledges of stock of a Guarantor to the extent that Rule 3-16 of Regulation S-X under the Securities Act requires or would require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, that would require) the filing with the SEC of separate financial statements of such Guarantor that are not otherwise required to be filed, but only to the extent necessary to not be subject to such requirement, (b) up to $50.0 million of assets received in connection with Asset Dispositions and asset swaps or exchanges as permitted by paragraph (3) of the definition of "Permitted Investments," (c) personal property where the cost of obtaining a security interest or perfection thereof exceeds its benefits, (d) real property subject to a Lien securing Indebtedness incurred for the purpose of financing the acquisition thereof, (e) real property located outside the United States, (f) unentitled land, (g) real property that is leased or held for the purpose of leasing to unaffiliated third parties, (h) equity
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interests in Unrestricted Subsidiaries (subject to future grants under the terms of the Indenture), (i) any real property in a community under development with a dollar amount of investment as of the most recent month-end (as determined in accordance with GAAP) of less than $2.0 million or with less than 10 lots remaining), (j) assets, with respect to which any applicable law or contract prohibits the creation or perfection of security interests therein and (k) any other assets excluded from the Collateral securing the First-Priority Lien Obligations, if any. In addition, under the terms of the Security Documents, the Issuer and the Guarantors will not be required to provide control agreements with respect to certain deposit, checking or securities accounts with average balances below a certain dollar amount.
If property (other than Excluded Property) is acquired by the Issuer or a Guarantor that is not automatically subject to a perfected security interest under the Security Documents or a Restricted Subsidiary becomes a Guarantor, then the Issuer or Guarantor will, as soon as practical after such property's acquisition or it no longer being Excluded Property, provide security over such property (or, in the case of a new Guarantor, all of its assets except Excluded Property) in favor of the Administrative Agent and the Collateral Agent and deliver certain certificates and opinions in respect thereof as required by the Indenture or the Security Documents.
In addition, the obligations under our Revolving Credit Agreement, and the guarantees thereof by each of the Guarantors will be secured by a First-Priority Lien on the Collateral. As set out in more detail below, upon an enforcement event or insolvency proceeding, proceeds from the Collateral will be applied first to satisfy such other obligations and then to satisfy obligations on the Notes. In addition, the Indenture will permit the Issuer and the Guarantors to create additional Liens under specified circumstances, including certain additional senior Liens on the Collateral. See the definition of "Permitted Liens."
The Collateral will be pledged to (1) the administrative agent under the Revolving Credit Agreement (together with any successor, the "Administrative Agent"), on a first-priority basis, for the benefit of the "Secured Parties" (as defined in the security documents relating to the Revolving Credit Agreement) and (2) Wilmington Trust Company, as collateral agent (together with any successor, the "Collateral Agent"), on a second-priority basis, for the benefit of the Trustee and the Holders of the Notes. The Second-Priority Lien Obligations will constitute claims separate and apart from (and of a different class from) the First-Priority Lien Obligations and will be junior to the First-Priority Liens. In certain states, mortgages will be granted solely to a single collateral agent, which will hold such mortgages for the benefit of the holders of the First-Priority Liens and the Second-Priority Liens.
Control Over Collateral and Enforcement of Liens
The Security Documents provide that, while any First-Priority Lien Obligations (or any commitments or letters of credit in respect thereof) are outstanding, the holders of the First-Priority Liens will control at all times all remedies and other actions related to the Collateral and the Second-Priority Liens will not entitle the Collateral Agent, the Trustee or the holders of any Notes to take any action whatsoever (other than limited actions to preserve and protect the Second-Priority Liens that do not impair the First-Priority Liens) with respect to the Collateral. As a result, while any First-Priority Lien Obligations (or any commitments or letters of credit in respect thereof) are outstanding, none of the Collateral Agent, the Trustee or the Holders of the Notes will be able to force a sale of the Collateral or otherwise exercise remedies normally available to secured creditors without the concurrence of the holders of the First-Priority Liens or challenge any decisions in respect thereof by the holders of the First-Priority Liens.
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Proceeds
realized by the Administrative Agent or the Collateral Agent from the Collateral or in an insolvency proceeding will be applied:
All of the Collateral has not been appraised in connection with the offering of the Notes. The consolidated book value of the real property Collateral as of July 31, 2008 was approximately $1.9 billion, which does not include the impact of inventory investments, home deliveries or impairments thereafter. The fair market value of the Collateral is subject to fluctuations based on factors that include, among others, the condition of the homebuilding industry, our ability to implement our business strategy, the ability to sell the Collateral in an orderly sale, general economic conditions, the availability of buyers and similar factors. The amount to be received upon a sale of the Collateral would be dependent on numerous factors, including but not limited to the actual fair market value of the Collateral at such time and the timing and the manner of the sale. By its nature, portions of the Collateral may be illiquid and may have no readily ascertainable market value. Likewise, there can be no assurance that the Collateral will be saleable, or, if saleable, that there will not be substantial delays in its liquidation. In the event of a foreclosure, liquidation, bankruptcy or similar proceeding, we cannot assure you that the proceeds from any sale or liquidation of the Collateral will be sufficient to pay our obligations under the Notes. In addition, the fact that the lenders under the Revolving Credit Agreement will receive proceeds from enforcement of the Collateral before Holders of the Notes, and that other Persons may have first-priority Liens in respect of assets subject to Permitted Liens could have a material adverse effect on the amount that would be realized upon a liquidation of the Collateral. Accordingly, there can be no assurance that proceeds of any sale of the Collateral pursuant to the Indenture and the related Security Documents following an Event of Default would be sufficient to satisfy, or would not be substantially less than, amounts due under the Notes.
If the proceeds of any of the Collateral were not sufficient to repay all amounts due on the Notes, the Holders of the Notes (to the extent not repaid from the proceeds of the sale of the Collateral) would have only an unsecured claim against the remaining assets of the Issuer and the Guarantors. By its nature, some or all of the Collateral will be illiquid and may have no readily ascertainable market value. Likewise, there can be no assurance that the Collateral will be saleable, or, if saleable, that there will not be substantial delays in its liquidation. To the extent that Liens (including Permitted Liens), rights or easements granted to third parties encumber assets located on property owned by the Issuer or the Guarantors, including the Collateral, such third parties may exercise rights and remedies with respect to the property subject to such Liens that could adversely affect the value of the Collateral and the ability of the Collateral Agent, the Trustee or the Holders of the Notes to realize or foreclose on Collateral.
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Release of Liens
The Security Documents provide that, to the extent that the holders of the First-Priority Liens release their First-Priority Liens (including with respect to the disposition of Collateral) on all or any portion of the Collateral, the Second-Priority Liens on such Collateral will likewise be released.
However, if the First-Priority Liens are released in connection with the repayment (or cash collateralization of letters of credit) of the First-Priority Lien Obligations and termination of the commitments thereunder, the Second-Priority Liens on the Collateral will not be released, except to the extent the Collateral or any portion thereof was disposed of in order to repay the First-Priority Lien Obligations secured by the Collateral, and thereafter, the Trustee (acting at the direction of the holders of a majority of outstanding principal amount of Notes) will have the right to direct the Collateral Agent to exercise remedies and to take other actions with respect to the Collateral.
If, after the Second-Priority Liens on any Collateral are released as contemplated above, the First-Priority Lien Obligations (or any portion thereof) are thereafter secured by assets (other than assets of the type referred to under clauses (a) or (b) of Excluded Property), the Notes will then be secured by a Second-Priority Lien on such assets, to the same extent as they were prior to such release, as provided pursuant to the Security Documents. If the Issuer subsequently incurs obligations under a new Credit Facility or other First-Priority Lien Obligations that are secured by Liens on assets of the Issuer and the Guarantors of the type constituting Collateral, then the Notes will be secured at such time by a Second-Priority Lien on the collateral securing such obligations under the new Credit Facility or First-Priority Lien Obligations to the same extent provided by the Security Documents on the terms and conditions of the security documents relating to the new Credit Facility or such other First-Priority Lien Obligations, with the Second-Priority Liens held either by the Administrative Agent under such new Credit Facility or by a collateral agent designated by the Issuer to hold the Second-Priority Liens for the benefit of the holders of Second-Priority Lien Obligations and subject to an intercreditor agreement that provides the Administrative Agent under such new Credit Facility substantially the same rights and powers as afforded under the Security Documents.
The Security Documents and the Indenture also provide that the Second-Priority Liens securing the Guarantee of any Guarantor will be automatically released when such Guarantor's Guarantee is released in accordance with the terms of the Indenture. In addition, the Second-Priority Liens securing the Notes will be released (a) upon discharge or defeasance of the Notes as set forth below under "—Discharge and defeasance of Indenture," (b) upon payment in full of principal, interest and all other Obligations on the Notes issued under the Indenture, (c) with the consent of the requisite Holders of the Notes in accordance with the provisions under "—Amendment, supplement and waiver," including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, Notes and (d) in connection with any disposition of Collateral to any Person other than the Company, the Issuer or any of the Restricted Subsidiaries (but excluding any transaction subject to "Certain covenants—Limitations on mergers, consolidations and sales of assets" where the recipient is required to become the obligor on the Notes or a Guarantee) that is permitted by the Indenture (with respect to the Lien on such Collateral).
To the extent applicable, the Issuer will comply with Section 313(b) of the TIA, relating to reports, and, following qualification of the Indenture under the Trust Indenture Act, Section 314(d) of the TIA, relating to the release of property and to the substitution therefor of any property to be pledged as Collateral for the Notes. Any certificate or opinion required by Section 314(d) of the TIA may be made by an Officer of the Issuer except in cases where Section 314(d) requires that such certificate or opinion be made by an independent engineer, appraiser or other expert, who shall be reasonably satisfactory to the Trustee. Notwithstanding anything to the contrary herein, the Issuer and the Guarantors will not be required to comply with all or any portion of Section 314(d) of the TIA if they determine, in good faith based on advice of counsel (which may be internal counsel), that under the
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terms of that section and/or any interpretation or guidance as to the meaning thereof of the SEC and its staff, including "no action" letters or exemptive orders, all or any portion of Section 314(d) of the TIA is inapplicable to the released Collateral. Without limiting the generality of the foregoing, certain no-action letters issued by the SEC have permitted an indenture qualified under the TIA to contain provisions permitting the release of collateral from Liens under such indenture in the ordinary course of the issuer's business without requiring the issuer to provide certificates and other documents under Section 314(d) of the TIA. In addition, under interpretations provided by the SEC, to the extent that a release of a Lien is made without the need for consent by the Holders or the Trustee, the provisions of Section 314(d) may be inapplicable to the release.
Amendments to Security Documents
So long as the First-Priority Lien Obligations (or any commitments or letters of credit in respect thereof) are outstanding, the holders of the First-Priority Liens may change, waive, modify or vary the security documents of such holders and the Intercreditor Agreement and such changes will automatically apply to the Security Documents; provided that any such change, waiver, modification or variance that is prejudicial to the rights of the Collateral Agent, the Trustee and the Holders of the Notes and does not affect the holders of the First-Priority Liens in a like or similar manner shall not apply to the Security Documents without the consent of the Collateral Agent and the Trustee (acting at the direction of the Holders of a majority of the aggregate principal amount of the applicable noteholder claims); provided, further, however, that notwithstanding the foregoing, the holders of the First-Priority Liens may agree to modify the security documents of such holders and the Intercreditor Agreement, without the consent of the Holders of the Second-Priority Liens, to secure additional extensions of credit and add additional secured creditors so long as such modifications do not expressly violate the provisions of the Indenture, including that after so securing any such additional extensions of credit and additional secured creditors, the amount of First-Priority Lien Obligations does not exceed the amount set forth under clause 9(b) of the definition of "Permitted Liens". In any case, notice of such amendment, waiver or consent shall be given to the Trustee.
Intercreditor Agreement
The Issuer, the Guarantors, the Trustee (including in its capacity as Collateral Agent) and the Administrative Agent under the
Revolving Credit Agreement (including in its capacity as collateral agent for the First-Priority Lien Obligations) and Wilmington Trust Company (as collateral agent with respect to Liens in certain
states, for the First-Priority Lien Obligations and the Second-Priority Lien Obligations with respect to such Liens) will enter into the Intercreditor Agreement which will establish the second
priority status of the Second-Priority Liens. In addition to the provisions described above with respect to control of remedies, release of Collateral and amendments to the Security Documents, the
Intercreditor Agreement also imposes certain other customary restrictions and agreements, including the restrictions and agreements described below.
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In
addition, if the Issuer or any Guarantor is subject to any insolvency or liquidation proceeding, the Trustee and the Holders agree that:
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Agent
are granted adequate protection in the form of additional collateral, the Trustee may seek or request adequate protection in the form of a replacement Lien on such additional collateral, which
Lien is fully junior and subordinate to the Lien granted to the lenders under the Revolving Credit Agreement and the Administrative Agent and the DIP financing providers;
No Impairment of the Security Interests
Neither the Issuer nor any of the Guarantors will be permitted to take any action, or knowingly or negligently omit to take any action, which action or omission might or would have the result of materially impairing the security interest with respect to the Collateral for the benefit of the Trustee and the Holders of the Notes.
The Indenture will provide that any release of Collateral in accordance with the provisions of the Indenture and the Security Documents will not be deemed to impair the security under the Indenture, and that any engineer, appraiser or other expert may rely on such provision in delivering a certificate requesting release so long as all other provisions of the Indenture with respect to such release have been complied with.
The Guarantees
The Company and each of the Guarantors will (so long, in the case of a Restricted Subsidiary, as it remains a Restricted Subsidiary) unconditionally guarantee on a joint and several basis all of our obligations under the Notes, including our obligations to pay principal, premium, if any, and interest with respect to the Notes. The obligations of each Guarantor other than the Company are limited to the maximum amount which, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Guarantee or pursuant to its contribution obligations under the Indenture, will result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state law. Each Guarantor other than the Company that makes a payment or distribution under a Guarantee shall be entitled to a contribution from each other Guarantor in an amount pro rata, based on the net assets of each Guarantor, determined in accordance with GAAP. Except as provided in "—Certain covenants" below, the Company is not restricted from selling or otherwise disposing of any of the Guarantors.
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The Indenture requires that each existing and future Restricted Subsidiary of the Company (other than the Issuer (for so long as it remains the Issuer) and K. Hovnanian Poland, sp.zo.o.) be a Guarantor. The Company is permitted to cause any Unrestricted Subsidiary to be a Guarantor.
The Indenture will provide that if all or substantially all of the assets of any Guarantor other than the Company or all of the Capital Stock of any Guarantor other than the Company is sold (including by consolidation, merger, issuance or otherwise) or disposed of (including by liquidation, dissolution or otherwise) by the Company or any of its Subsidiaries, or, unless the Company elects otherwise, if any Guarantor other than the Company is designated an Unrestricted Subsidiary in accordance with the terms of the Indenture, then such Guarantor (in the event of a sale or other disposition of all of the Capital Stock of such Guarantor or a designation as an Unrestricted Subsidiary) or the Person acquiring such assets (in the event of a sale or other disposition of all or substantially all of the assets of such Guarantor) shall be deemed automatically and unconditionally released and discharged from any of its obligations under the Indenture without any further action on the part of the Trustee or any Holder of the Notes.
An Unrestricted Subsidiary that is a Guarantor shall be deemed automatically and unconditionally released and discharged from all obligations under its Guarantee upon notice from the Company to the Trustee to such effect, without any further action required on the part of the Trustee or any Holder.
A sale of assets or Capital Stock of a Guarantor may constitute an Asset Disposition subject to the "Limitations on dispositions of assets" covenant.
Redemption
Except as set forth in the next two paragraphs, the Notes are not redeemable at the option of the Issuer.
At any time and from time to time on or after November 1, 2010, the Issuer may redeem the Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set forth below plus accrued and unpaid interest to the redemption date.
Period commencing
|
Percentage | |||
|---|---|---|---|---|
November 1, 2010 |
102 | % | ||
May 1, 2011 |
101 | % | ||
May 1, 2012 |
100 | % | ||
At any time and from time to time prior to May 1, 2011, the Issuer may redeem Notes with the net cash proceeds received by the Issuer from any Equity Offering of the Company at a redemption price equal to 111.50% of the principal amount plus accrued and unpaid interest to the redemption date, in an aggregate principal amount for all such redemptions not to exceed 35% of the original aggregate principal amount of the Notes, provided that:
There is no sinking fund for, or mandatory redemption of, the Notes.
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If less than all of the Notes are to be redeemed at any time, the Trustee will select Notes for redemption on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem appropriate and fair.
No Notes of $2,000 in original principal amount or less shall be redeemed in part. Notices of redemption may not be conditional.
If any Note is to be redeemed in part only, the notice of redemption that relates to that Note shall state the portion of the principal amount thereof to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note will be issued in the name of the Holder thereof upon cancellation of the original Note. Notes called for redemption become due on the date fixed for redemption. On and after the redemption date, interest ceases to accrue on Notes or portions of them called for redemption.
Certain covenants
The following is a summary of certain covenants that are contained in the Indenture. Such covenants are applicable (unless waived or amended as permitted by the Indenture) so long as any of the Notes are outstanding or until the Notes are defeased pursuant to provisions described under "—Discharge and defeasance of Indenture."
Repurchase of Notes upon change of control.
In the event that there shall occur a Change of Control, each Holder of Notes shall have the right, at such Holder's option, to require the Issuer to purchase all or any part of such Holder's Notes on a date (the "Repurchase Date") that is no later than 90 days after notice of the Change of Control, at 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the Repurchase Date.
On or before the thirtieth day after any Change of Control, the Issuer is obligated to mail or cause to be mailed, to all Holders of record of Notes, a notice regarding the Change of Control and the repurchase right. The notice shall state the Repurchase Date, the date by which the repurchase right must be exercised, the price for the Notes and the procedure which the Holder must follow to exercise such right. Substantially simultaneously with mailing of the notice, the Issuer shall cause a copy of such notice to be published in a newspaper of general circulation in the Borough of Manhattan, The City of New York. To exercise such right, the Holder of such Note must deliver, at least ten days prior to the Repurchase Date, written notice to the Issuer (or an agent designated by the Issuer for such purpose) of the Holder's exercise of such right, together with the Note with respect to which the right is being exercised, duly endorsed for transfer; provided, however, that if mandated by applicable law, a Holder may be permitted to deliver such written notice nearer to the Repurchase Date than may be specified by the Issuer.
The Issuer will comply with applicable law, including Section 14(e) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 14e-1 thereunder, if applicable, if the Issuer is required to give a notice of a right of repurchase as a result of a Change of Control.
With respect to any disposition of assets, the phrase "all or substantially all" as used in the Indenture (including as set forth under "—Certain covenants—Limitations on mergers, consolidations and sales of assets" below) varies according to the facts and circumstances of the subject transaction, has no clearly established meaning under New York law (which governs the Indenture) and is subject to judicial interpretation. Accordingly, in certain circumstances there may be a degree of uncertainty in ascertaining whether a particular transaction would involve a disposition of "all or substantially all" of the assets of the Company, and therefore it may be unclear as to whether a Change of Control has occurred and whether the Holders have the right to require the Issuer to repurchase Notes.
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None of the provisions relating to a repurchase upon a Change of Control is waivable by the Board of Directors of the Issuer or the Company. The Company could, in the future, enter into certain transactions, including certain recapitalizations of the Company, that would not result in a Change of Control, but would increase the amount of Indebtedness outstanding at such time.
The Indenture will require the payment of money for Notes or portions thereof validly tendered to, and accepted for payment by, the Issuer pursuant to a Change of Control offer. In the event that a Change of Control has occurred under the Indenture, a change of control will also have occurred under the indentures governing the Issuer's other outstanding notes and under the Issuer's Revolving Credit Agreement. If a Change of Control were to occur, there can be no assurance that the Issuer would have sufficient funds to pay the purchase price for all Notes and amounts due under other Indebtedness that the Company may be required to repurchase or repay or that the Company or the other Guarantors would be able to make such payments. In the event that the Issuer were required to purchase outstanding Notes pursuant to a Change of Control offer, the Company expects that it would need to seek third-party financing to the extent it does not have available funds to enable the Issuer to meet its purchase obligations. However, there can be no assurance that the Company would be able to obtain such financing.
Failure by the Issuer to purchase the Notes when required upon a Change of Control will result in an Event of Default with respect to the Notes.
These provisions could have the effect of deterring hostile or friendly acquisitions of the Company where the Person attempting the acquisition views itself as unable to finance the purchase of the principal amount of Notes which may be tendered to the Issuer upon the occurrence of a Change of Control.
Limitations on indebtedness.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary, directly or indirectly, to create, incur, assume, become liable for or guarantee the payment of (collectively, an "incurrence") any Indebtedness (including Acquired Indebtedness) unless, after giving effect thereto and the application of the proceeds therefrom, the Consolidated Fixed Charge Coverage Ratio on the date thereof would be at least 2.0 to 1.0.
Notwithstanding the foregoing, the provisions of the Indenture will not prevent the incurrence of:
For purposes of determining compliance with this covenant, in the event that an item of Indebtedness may be incurred through the first paragraph of this covenant or by meeting the criteria of one or more of the types of Indebtedness described in the second paragraph of this covenant (or the definitions of the terms used therein), the Company, in its sole discretion,
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The Company and the Issuer will not, and will not cause or permit any Guarantor to, directly or indirectly, in any event incur any Indebtedness that purports to be by its terms (or by the terms of any agreement governing such Indebtedness) subordinated to any other Indebtedness of the Company or of such Guarantor, as the case may be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinated to the Notes or the Guarantee of such Guarantor, as the case may be, to the same extent and in the same manner as such Indebtedness is subordinated to such other Indebtedness of the Company or such Guarantor, as the case may be.
Limitations on restricted payments.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, directly or indirectly, make any Restricted Payment unless:
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long as the designation of such Subsidiary as an Unrestricted Subsidiary was treated as a Restricted Payment made after the Issue Date, and only to the extent not included in the calculation of Consolidated Net Income referred to in (a)), an amount equal to the lesser of (x) the proportionate interest of the Company or a Restricted Subsidiary in an amount equal to the excess of (I) the total assets of such Subsidiary, valued on an aggregate basis at the lesser of book value and Fair Market Value thereof, over (II) the total liabilities of such Subsidiary, determined in accordance with GAAP, and (y) the Designation Amount at the time of such Subsidiary's designation as an Unrestricted Subsidiary
The foregoing clauses (2) and (3) will not prohibit:
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market value to be determined by the most recent appraisal of the Collateral required to be provided under the Revolving Credit Agreement;
provided, however, that each Restricted Payment described in clauses (A) and (B) of this sentence shall be taken into account for purposes of computing the aggregate amount of all Restricted Payments pursuant to clause (3) of the immediately preceding paragraph.
For purposes of determining the aggregate and permitted amounts of Restricted Payments made, the amount of any guarantee of any Investment in any Person that was initially treated as a Restricted Payment and which was subsequently terminated or expired, net of any amounts paid by the Company or any Restricted Subsidiary in respect of such guarantee, shall be deducted.
In determining the "Fair Market Value of Property" for purposes of clause (3) of the first paragraph of this covenant, Property other than cash, Cash Equivalents and Marketable Securities shall be deemed to be equal in value to the "equity value" of the Capital Stock or other securities issued in exchange therefor. The equity value of such Capital Stock or other securities shall be equal to (i) the number of shares of Common Equity issued in the transaction (or issuable upon conversion or exercise of the Capital Stock or other securities issued in the transaction) multiplied by the closing sale price of the Common Equity on its principal market on the date of the transaction (less, in the case of Capital Stock or other securities which require the payment of consideration at the time of conversion or exercise, the aggregate consideration payable thereupon) or (ii) if the Common Equity is not then traded on the New York Stock Exchange, American Stock Exchange or Nasdaq Stock Market, or if the Capital Stock or other securities issued in the transaction do not consist of Common Equity (or Capital Stock or other securities convertible into or exercisable for Common Equity), the value (if more than $10 million) of such Capital Stock or other securities as determined by a nationally recognized investment banking firm retained by the Board of Directors of the Company.
Solely for the purpose of permitting Restricted Payments under clause (C)(iii) above, the Indenture will provide that, as soon as commercially reasonable, but in no event later than 180 days from Issue Date, the Company will be required to have received appraisals from an independent appraiser. Such appraisal must establish that the Collateral includes at least $1.8 billion of market value of Collateral (an appraisal establishing such value, a "Qualified Collateral Appraisal"). If the initial Qualified Collateral Appraisal does not establish such market value but the Company determines, at its option, to obtain additional appraisals from an independent appraiser at a later date that do establish such valuation, then from and after receipt of such new appraisals (which shall be deemed Qualified Collateral Appraisals), the Company shall be permitted to utilize clause (C)(iii) above.
Limitations on transactions with affiliates.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, make any loan, advance, guarantee or capital contribution to, or for the benefit of, or sell, lease, transfer or otherwise dispose of any property or assets to or for the benefit of, or purchase or lease any property or assets from, or enter into or amend any contract, agreement or
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understanding with, or for the benefit of, any Affiliate of the Company or any Affiliate of any of the Company's Subsidiaries or any holder of 10% or more of the Common Equity of the Company (including any Affiliates of such holders), in a single transaction or series of related transactions (each, an "Affiliate Transaction"), except for any Affiliate Transaction the terms of which are at least as favorable as the terms which could be obtained by the Company, the Issuer or such Restricted Subsidiary, as the case may be, in a comparable transaction made on an arm's-length basis with Persons who are not such a holder, an Affiliate of such a holder or an Affiliate of the Company or any of the Company's Subsidiaries.
In addition, the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, enter into an Affiliate Transaction unless:
The Indenture will also provide that notwithstanding the foregoing, an Affiliate Transaction will not include:
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Limitations on dispositions of assets.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, make any Asset Disposition unless:
The amount of (i) any Indebtedness (other than any Subordinated Indebtedness) of the Company or any Restricted Subsidiary that is actually assumed by the transferee in such Asset Disposition and (ii) the fair market value (as determined in good faith by the Board of Directors of the Company) of any property or assets (including Capital Stock of any Person that will be a Restricted Subsidiary following receipt thereof) received that are used or useful in a Real Estate Business (provided that (except as permitted by clause (3) under the definition of "Permitted Investment") to the extent that the assets disposed of in such Asset Disposition were Collateral, such property or assets are pledged as Collateral under the Security Documents substantially simultaneously with such sale, with the Lien on such Collateral securing the Notes being of the same priority with respect to the Notes as the Lien on the assets disposed of), shall be deemed to be consideration required by clause (b) above for purposes of determining the percentage of such consideration received by the Company or the Restricted Subsidiaries.
The Net Cash Proceeds of an Asset Disposition shall, within one year, at the Company's election, (a) be used by the Company or a Restricted Subsidiary to invest in assets (including Capital Stock of any Person that is or will be a Restricted Subsidiary following investment therein) used or useful in the business of the construction and sale of homes conducted by the Company and the Restricted Subsidiaries (provided that (except as permitted by clause (3) under the definition of "Permitted Investment") to the extent that the assets disposed of in such Asset Disposition were Collateral, such assets are pledged as Collateral under the Security Documents with the Lien on such Collateral securing the Notes being of the same priority with respect to the Notes as the Lien on the assets disposed of), (b) be used to permanently prepay or permanently repay any (1) Indebtedness (or cash collateralize letters of credit) constituting First-Priority Lien Obligations, (2) Indebtedness which had been secured by the assets sold in the relevant Asset Disposition, to the extent the assets sold were not Collateral or (3) Indebtedness of a Restricted Subsidiary that is not a Guarantor, to the extent the assets sold were not Collateral, or (c) be applied to make an Offer to Purchase Notes and, if the Company or a Restricted Subsidiary elects or is required to do so and the assets disposed of were not Collateral repay, purchase or redeem any other unsubordinated Indebtedness (on a pro rata basis if the amount available for such repayment, purchase or redemption is less than the aggregate amount of (i) the principal amount of the Notes tendered in such Offer to Purchase and (ii) the lesser of the principal amount, or accreted value, of such other unsubordinated Indebtedness, plus, in each case accrued interest to the date of repayment, purchase or redemption) at 100% of the principal amount or accreted value thereof, as the case may be, plus accrued and unpaid interest, if any, to the date of repurchase or repayment. Pending any such application under this paragraph, Net Cash Proceeds may be used to temporarily reduce Indebtedness or otherwise be invested in any manner not prohibited by the Indenture.
Notwithstanding the foregoing, (A) the Company will not be required to apply such Net Cash Proceeds in accordance with clauses (b) or (c) of the preceding sentence except to the extent that such Net Cash Proceeds, together with the aggregate Net Cash Proceeds of prior Asset Dispositions (other than those so used) which have not been applied in accordance with this provision and as to which no
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prior prepayments or repayments shall have been made and no Offer to Purchase shall have been made, exceed $25 million and (B) in connection with an Asset Disposition, the Company and the Restricted Subsidiaries will not be required to comply with the requirements of clause (b) of the first sentence of the first paragraph of this covenant to the extent that the non-cash consideration received in connection with such Asset Disposition, together with the sum of all non-cash consideration received in connection with all prior Asset Dispositions that has not yet been converted into cash, Cash Equivalents or Marketable Securities, does not exceed $25 million; provided, however, that when any non-cash consideration is converted into cash, Cash Equivalents or Marketable Securities, such cash shall constitute Net Cash Proceeds and be subject to the preceding sentence.
Limitations on liens.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any Liens, other than Permitted Liens, on any of its Property, or on any shares of Capital Stock or Indebtedness of any Restricted Subsidiary.
Limitations on restrictions affecting restricted subsidiaries.
The Indenture will provide that the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, create, assume or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction (other than encumbrances or restrictions imposed by law or by judicial or regulatory action or by provisions of agreements that restrict the assignability thereof) on the ability of any Restricted Subsidiary to:
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Limitations on mergers, consolidations and sales of assets.
The Indenture will provide that neither the Issuer nor any Guarantor will consolidate or merge with or into, or sell, lease, convey or otherwise dispose of all or substantially all of its assets (including, without limitation, by way of liquidation or dissolution), or assign any of its obligations under the Notes, the Guarantees or the Indenture (as an entirety or substantially as an entirety in one transaction or in a series of related transactions), to any Person (in each case other than in a transaction in which the Company, the Issuer or a Restricted Subsidiary is the survivor of a consolidation or merger, or the transferee in a sale, lease, conveyance or other disposition) unless:
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or other legal entity organized and existing under the laws of the United States or any state thereof or the District of Columbia, and the Successor assumes by supplemental indenture in a form reasonably satisfactory to the Trustee all of the obligations of the Company, the Issuer or the Guarantor, as the case may be, under the Notes or a Guarantee, as the case may be, and the Indenture and the Security Documents,
The foregoing provisions shall not apply to:
Reports to holders of Notes.
The Company shall file with the Commission the annual reports and the information, documents and other reports required to be filed pursuant to Section 13 or 15(d) of the Exchange Act. The Company shall file with the Trustee and mail to each Holder of record of Notes such reports, information and documents within 15 days after it files them with the Commission. In the event that the Company is no longer subject to these periodic requirements of the Exchange Act, it will nonetheless continue to file reports with the Commission and the Trustee and mail such reports to each Holder of Notes as if it were subject to such reporting requirements. Regardless of whether the Company is required to furnish such reports to its stockholders pursuant to the Exchange Act, the Company will cause its consolidated financial statements and a "Management's Discussion and Analysis of Results of Operations and Financial Condition" written report, similar to those that would have been required to appear in annual or quarterly reports, to be delivered to Holders of Notes.
Condition for Release of the Issuer
The Indenture provides that the Issuer may be released from its obligations under the Indenture and the Notes, without the consent of the Holders of the Notes, if (1) the Company or any successor to the Company has assumed the obligations of the Issuer under the Indenture and the Notes, (2) the Company delivers an opinion of counsel to the Trustee to the effect that Holders will not recognize income, gain or loss for federal income tax purposes as a result of the release and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case otherwise and (3) the Issuer becomes a Guarantor of the Notes at such time, until such time, if any, as such Guarantee may be released as described above under the caption "—The Guarantees."
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Events of default
The following are Events of Default under the Indenture:
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and the order or decree remains unstayed and in effect for 60 days;
A Default as described in subclause (3) above will not be deemed an Event of Default until the Trustee notifies the Company, or the Holders of at least 25 percent in principal amount of the then outstanding Notes notify the Company and the Trustee, of the Default and (except in the case of a default with respect to covenants described under "Certain covenants—Repurchase of Notes upon change of control" and "Certain covenants—Limitations on mergers, consolidations and sales of assets") the Company does not cure the Default within 60 days after receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a "Notice of Default." If such a Default is cured within such time period, it ceases.
If an Event of Default (other than an Event of Default with respect to the Company or the Issuer resulting from subclauses (7) or (8) above), shall have occurred and be continuing under the Indenture, the Trustee by notice to the Company, or the Holders of at least 25 percent in principal amount of the Notes then outstanding by notice to the Company and the Trustee, may declare all Notes to be due and payable immediately. Upon such declaration of acceleration, the amounts due and payable on the Notes will be due and payable immediately. If an Event of Default with respect to the Company or the Issuer specified in subclauses (7) or (8) above occurs, such an amount will ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee and the Company or any Holder.
The Holders of a majority in principal amount of the Notes then outstanding by written notice to the Trustee and the Company may waive any Default or Event of Default (other than any Default or Event of Default in payment of principal or interest) on the Notes under the Indenture. Holders of a majority in principal amount of the then outstanding Notes may rescind an acceleration and its consequence (except an acceleration due to nonpayment of principal or interest on the Notes) if the rescission would not conflict with any judgment or decree and if all existing Events of Default (other than the non-payment of accelerated principal) have been cured or waived.
The Holders may not enforce the provisions of the Indenture, the Notes or the Guarantees except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of any trust or power, provided,
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however, that such direction does not conflict with the terms of the Indenture. The Trustee may withhold from the Holders notice of any continuing Default or Event of Default (except any Default or Event of Default in payment of principal or interest on the Notes or that resulted from the failure to comply with the covenant entitled "Repurchase of Notes upon change of control") if the Trustee determines that withholding such notice is in the Holders' interest.
The Company is required to deliver to the Trustee an annual statement regarding compliance with the Indenture and include in such statement if any officer of the Company is aware of any Default or Event of Default, a statement specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. In addition, the Company is required to deliver to the Trustee prompt written notice of the occurrence of any Default or Event of Default.
Discharge and defeasance of Indenture
The Company, the Issuer and the Guarantors may discharge their obligations under the Notes, the Guarantees, the Indenture and the Security Documents and cause the release of all Liens on the Collateral granted under the Security Documents by irrevocably depositing in trust with the Trustee money or U.S. Government Obligations sufficient to pay principal of, premium and interest on the Notes to maturity or redemption and the Notes mature or are to be called for redemption within one year, subject to meeting certain other conditions.
The Indenture will permit the Company, the Issuer and the Guarantors to terminate all of their respective obligations under the Indenture with respect to the Notes and the Guarantees and under the Security Documents and cause the release of all Liens on the Collateral granted under the Security Documents, other than the obligation to pay interest on and the principal of the Notes and certain other obligations ("legal defeasance"), at any time by:
In addition, the Indenture will permit the Company, the Issuer and the Guarantors to terminate all of their obligations under the Indenture with respect to certain covenants and Events of Default specified in the Indenture, and the Guarantors and the Liens on the Collateral granted under the Security Documents will be released ("covenant defeasance"), at any time by:
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Notwithstanding
the foregoing, no discharge, legal defeasance or covenant defeasance described above will affect the following obligations to, or rights of, the Holders of the
Notes:
The Company, the Issuer or the Guarantors may exercise the legal defeasance option with respect to the Notes notwithstanding the prior exercise of the covenant defeasance option with respect to the Notes. If the Company, the Issuer or the Guarantors exercise the legal defeasance option with respect to the Notes, payment of the Notes may not be accelerated due to an Event of Default with respect to the Notes. If the Company, the Issuer or the Guarantors exercise the covenant defeasance option with respect to the Notes, payment of the Notes may not be accelerated due to an Event of Default with respect to the covenants to which such covenant defeasance is applicable. However, if acceleration were to occur by reason of another Event of Default, the realizable value at the acceleration date of the cash and U.S. Government Obligations in the defeasance trust could be less than the principal of, premium, if any, and interest then due on the Notes, in that the required deposit in the defeasance trust is based upon scheduled cash flow rather than market value, which will vary depending upon interest rates and other factors.
Transfer and exchange
A Holder may transfer or exchange Notes only in accordance with the provisions of the Indenture. The Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.
Amendment, supplement and waiver
Subject to certain exceptions, the Indenture, the Notes, the Guarantees or the Security Documents may be amended or supplemented with the consent (which may include written consents obtained in connection with a tender offer or exchange offer for Notes) of the Holders of at least a majority in principal amount of the Notes then outstanding, and future compliance with any provision of the Indenture, the Notes or the Security Documents may be waived (other than any continuing Default or Event of Default in the payment of interest on or the principal of the Notes) with the consent (which may include waivers obtained in connection with a tender offer or exchange offer for Notes) of the Holders of a majority in principal amount of the Notes then outstanding. Without the consent of, or notice to, any Holder, the Company, the Issuer, the Guarantors, the Trustee, the Collateral Agent, Administrative Agent and Wilmington Trust Company may amend or supplement the Indenture, the Notes, the Guarantees or the Security Documents to cure any ambiguity, defect or inconsistency; to comply with the "Limitations on mergers, consolidations and sales of assets" covenant set forth in the Indenture; to comply with any requirements of the Commission in connection with the qualification of the Indenture under the Trust Indenture Act; to evidence and provide for the acceptance of appointment under the Indenture by a successor or replacement Trustee or under the Security Documents of a successor or replacement Collateral Agent; to provide for uncertificated Notes in
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addition to or in place of certificated Notes; to provide for any Guarantee of the Notes; to add security to or for the benefit of the Notes and, in the case of the Security Documents, to or for the benefit of the other secured parties named therein or to confirm and evidence the release, termination or discharge of any Guarantee of or Lien securing the Notes when such release, termination or discharge is permitted by the Indenture and the Security Documents; to make any change that does not adversely affect the legal rights of any Holder; to evidence the assumption by the Company (or its successor entity) or a successor entity of the Issuer of the obligations of the Issuer under the Indenture and the Notes; to add covenants or new events of default for the protection of the Holders of the Notes; or to conform any provision of the Indenture, the Notes, the Guarantees or the Security Documents to this "Description of Notes" to the extent that this "Description of Notes" was intended to be a verbatim recitation of a provision in the Indenture, the Notes, the Guarantees or the Security Documents. In addition, the Collateral Agent, the Administrative Agent, Wilmington Trust Company and the Trustee will be authorized to amend the Security Documents to add additional secured parties to the extent Liens securing Obligations held by such parties are permitted under the Indenture and that after so securing any such additional secured parties, the amount of First-Priority Lien Obligations does not exceed the amount set forth under clause 9(b) of the definition of "Permitted Liens".
Without the consent of each Holder affected, the Company, the Issuer, the Guarantors, the Trustee, the Collateral Agent, the Administrative Agent and Wilmington Trust Company may not:
The right of any Holder to participate in any consent required or sought pursuant to any provision of the Indenture (and our obligation to obtain any such consent otherwise required from such Holder) may be subject to the requirement that such Holder shall have been the Holder of record of any Notes with respect to which such consent is required or sought as of a date identified by the Trustee in a notice furnished to Holders in accordance with the terms of the Indenture.
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Governing law
The Indenture, the Notes, the Guarantees and the Security Documents will be governed by the laws of the State of New York.
Definitions of certain terms used in the Indenture
Set forth below is a summary of certain of the defined terms used in the Indenture. Reference is made to the Indenture for the full definition of all terms used in the Indenture.
"Acquired Indebtedness" means (1) with respect to any Person that becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted Subsidiary) after the Issue Date, Indebtedness of such Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted Subsidiary) that was not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary (or being merged into the Company, the Issuer or any Restricted Subsidiary) and (2) with respect to the Company, the Issuer or any Restricted Subsidiary, any Indebtedness expressly assumed by the Company, the Issuer or any Restricted Subsidiary in connection with the acquisition of any assets from another Person (other than the Company, the Issuer or any Restricted Subsidiary), which Indebtedness was not incurred by such other Person in connection with or in contemplation of such acquisition. Indebtedness incurred in connection with or in contemplation of any transaction described in clause (1) or (2) of the preceding sentence shall be deemed to have been incurred by the Company or a Restricted Subsidiary, as the case may be, at the time such Person becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted Subsidiary) in the case of clause (1) or at the time of the acquisition of such assets in the case of clause (2), but shall not be deemed Acquired Indebtedness.
"Affiliate" means, when used with reference to a specified Person, any Person directly or indirectly controlling, or controlled by or under direct or indirect common control with the Person specified.
"Asset Acquisition" means (1) an Investment by the Company, the Issuer or any Restricted Subsidiary in any other Person if, as a result of such Investment, such Person shall become a Restricted Subsidiary or shall be consolidated or merged with or into the Company, the Issuer or any Restricted Subsidiary or (2) the acquisition by the Company, the Issuer or any Restricted Subsidiary of the assets of any Person, which constitute all or substantially all of the assets or of an operating unit or line of business of such Person or which is otherwise outside the ordinary course of business.
"Asset Disposition" means any sale, transfer, conveyance, lease or other disposition (including, without limitation, by way of merger, consolidation or sale and leaseback or sale of shares of Capital Stock in any Subsidiary) (each, a "transaction") by the Company, the Issuer or any Restricted Subsidiary to any Person of any Property having a Fair Market Value in any transaction or series of related transactions of at least $5 million. The term "Asset Disposition" shall not include:
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following receipt thereof) that (x) are to be used by the Company, the Issuer or any Restricted Subsidiary in the ordinary course of its Real Estate Business and (y) have a Fair Market Value not less than the Fair Market Value of the assets exchanged or swapped (provided that (except as permitted by clause (3) under the definition of "Permitted Investment") to the extent that the assets exchanged or swapped were Collateral, the assets received are pledged as Collateral under the Security Documents substantially simultaneously with such sale, with the Lien on such assets received being of the same priority with respect to the Notes as the Lien on the assets disposed of),
"Attributable Debt" means, with respect to any Capitalized Lease Obligations, the capitalized amount thereof determined in accordance with GAAP.
"Bankruptcy Law" means title 11 of the United States Code, as amended, or any similar federal or state law for the relief of debtors.
"Capital Stock" means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of or in such Person's capital stock or other equity interests, and options, rights or warrants to purchase such capital stock or other equity interests, whether now outstanding or issued after the Issue Date, including, without limitation, all Disqualified Stock and Preferred Stock.
"Capitalized Lease Obligations" of any Person means the obligations of such Person to pay rent or other amounts under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligations will be the capitalized amount thereof determined in accordance with GAAP.
"Cash Equivalents" means
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"Change of Control" means
"Collateralized Debt" means (i) the aggregate principal amount of all Indebtedness and all letters of credit secured by Liens on the Collateral and (ii) the aggregate amount of all unfunded commitments under all credit facilities or lines of credit secured by Liens on the Collateral but excluding Indebtedness, letters of credit and unfunded commitments secured by Liens on the Collateral that rank junior to the Liens on the Collateral securing the Notes.
"Common Equity" of any Person means Capital Stock of such Person that is generally entitled to (1) vote in the election of directors of such Person or (2) if such Person is not a corporation, vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of such Person.
"Consolidated Cash Flow Available for Fixed Charges" means, for any period, Consolidated Net Income for such period plus (each to the extent deducted in calculating such Consolidated Net Income and determined in accordance with GAAP) the sum for such period, without duplication, of:
all other non-cash items (other than the receipt of notes receivable) increasing such Consolidated Net Income.
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"Consolidated Fixed Charge Coverage Ratio" means, with respect to any determination date, the ratio of (x) Consolidated Cash Flow Available for Fixed Charges for the prior four full fiscal quarters (the "Four Quarter Period") for which financial results have been reported immediately preceding the determination date (the "Transaction Date"), to (y) the aggregate Consolidated Interest Incurred for the Four Quarter Period. For purposes of this definition, "Consolidated Cash Flow Available for Fixed Charges" and "Consolidated Interest Incurred" shall be calculated after giving effect on a pro forma basis for the period of such calculation to:
Furthermore, in calculating "Consolidated Cash Flow Available for Fixed Charges" for purposes of determining the denominator (but not the numerator) of this "Consolidated Fixed Charge Coverage Ratio,"
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"Consolidated Interest Expense" of the Company for any period means the Interest Expense of the Company, the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.
"Consolidated Interest Incurred" for any period means the Interest Incurred of the Company, the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.
"Consolidated Net Income" for any period means the aggregate net income (or loss) of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided, that there will be excluded from such net income (loss) (to the extent otherwise included therein), without duplication:
provided, further, that for purposes of calculating Consolidated Net Income solely as it relates to clause (3) of the first paragraph of the "Limitations on Restricted Payments" covenant, clause (4)(b) above shall not be applicable.
"Continuing Director" means a director who either was a member of the Board of Directors of the Company on the Issue Date or who became a director of the Company subsequent to such date and whose election or nomination for election by the Company's stockholders was duly approved by a majority of the Continuing Directors on the Board of Directors of the Company at the time of such approval, either by a specific vote or by approval of the proxy statement issued by the Company on
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behalf of the entire Board of Directors of the Company in which such individual is named as nominee for director.
"control" when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.
"Credit Facilities" means, collectively, each of the credit facilities and lines of credit of the Company or one or more Restricted Subsidiaries in existence, or entered into, on the Issue Date, including, without limitation, the Revolving Credit Agreement, and one or more other facilities and lines of credit among or between the Company or one or more Restricted Subsidiaries and one or more lenders pursuant to which the Company or one or more Restricted Subsidiaries may incur indebtedness for working capital and general corporate purposes (including acquisitions), as any such facility or line of credit may be amended, restated, supplemented or otherwise modified from time to time, and includes any agreement extending the maturity of, increasing the amount of, or restructuring, all or any portion of the Indebtedness under such facility or line of credit or any successor facilities or lines of credit and includes any facility or line of credit with one or more lenders refinancing or replacing all or any portion of the Indebtedness under such facility or line of credit or any successor facility or line of credit.
"Currency Agreement" of any Person means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in currency values.
"Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
"Default" means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default.
"Designation Amount" has the meaning provided in the definition of "Unrestricted Subsidiary."
"Disqualified Stock" means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (1) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior to the final maturity date of the Notes or (2) is convertible into or exchangeable or exercisable for (whether at the option of the issuer or the holder thereof) (a) debt securities or (b) any Capital Stock referred to in (1) above, in each case, at any time prior to the final maturity date of the Notes; provided, however, that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof (or the holders of any security into or for which such Capital Stock is convertible, exchangeable or exercisable) the right to require the Company to repurchase or redeem such Capital Stock upon the occurrence of a change in control or asset disposition occurring prior to the final maturity date of the Notes shall not constitute Disqualified Stock if the change in control or asset disposition provision applicable to such Capital Stock are no more favorable to such holders than the provisions described under the captions "—Certain covenants—Repurchase of Notes upon change of control" or "—Certain covenants—Limitations on dispositions of assets," as applicable, and such Capital Stock specifically provides that the Company will not repurchase or redeem any such Capital Stock pursuant to such provisions prior to the Company's repurchase of the Notes as are required pursuant to the provisions described under the captions "—Certain covenants—Repurchase of Notes upon change of control" or "—Certain covenants—Limitations on depositions of assets," as applicable.
"Equity Offering" means any public or private sale, after the Issue Date, of Qualified Stock of the Company, other than (i) an Excluded Contribution, (ii) public offerings registered on Form S-4 or S-8
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or any successor form thereto or (iii) any issuance pursuant to employee benefit plans or otherwise in compensation to officers, directors or employees.
"Event of Default" has the meaning set forth in "Events of Default."
"Excluded Contribution" means cash or Cash Equivalents received by the Company as capital contributions to its equity (other than through the issuance of Disqualified Stock) or from the issuance or sale (other than to a Subsidiary) of Qualified Stock of the Company, in each case, after January 31, 2008 and to the extent designated as an Excluded Contribution pursuant to an Officer's Certificate of the Company.
"Fair Market Value" means, with respect to any asset, the price (after taking into account any liabilities relating to such assets) that would be negotiated in an arm's-length transaction for cash between a willing seller and a willing and able buyer, neither of which is under any compulsion to complete the transaction, as such price is determined in good faith by the Board of Directors of the Company or a duly authorized committee thereof, as evidenced by a resolution of such Board or committee.
"First-Priority Lien Obligations" has the meaning set forth in "Permitted Liens."
"First-Priority Liens" means all Liens that secure the First-Priority Lien Obligations.
"GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date.
"guarantee" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person: (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof, in whole or in part; provided that the term "guarantee" does not include endorsements for collection or deposit in the ordinary course of business. The term "guarantee" used as a verb has a corresponding meaning.
"Guarantee" means the guarantee of the Notes by the Company and each other Guarantor under the Indenture.
"Guarantors" means (i) initially, the Company and each of the Company's Restricted Subsidiaries in existence on the Issue Date, other than the Issuer and K. Hovnanian Poland, sp.z.o.o., and (ii) each of the Company's Subsidiaries which becomes a Guarantor of the Notes pursuant to the provisions of the Indenture, and their successors, in each case until released from its respective Guarantee pursuant to the Indenture.
"Holder" or "Holder(s) of Notes" means the Person in whose name a Note is registered in the books of the Registrar for the Notes.
"Indebtedness" of any Person means, without duplication,
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payment bonds, earnest money notes or similar purpose undertakings or indemnifications issued by, such Person in the ordinary course of business), (b) evidenced by a bond, note, debenture or similar instrument (including a purchase money obligation) given in connection with the acquisition of any businesses, properties or assets of any kind or with services incurred in connection with capital expenditures (other than any obligation to pay a contingent purchase price which, as of the date of incurrence thereof, is not required to be recorded as a liability in accordance with GAAP), or (c) in respect of Capitalized Lease Obligations (to the extent of the Attributable Debt in respect thereof),
provided, that Indebtedness shall not include accounts payable, liabilities to trade creditors of such Person or other accrued expenses arising in the ordinary course of business. The amount of Indebtedness of any Person at any date shall be (a) the outstanding balance at such date of all unconditional obligations as described above, net of any unamortized discount to be accounted for as Interest Expense, in accordance with GAAP, (b) the maximum liability of such Person for any contingent obligations under clause (1) above at such date, net of an unamortized discount to be accounted for as Interest Expense in accordance with GAAP, and (c) in the case of clause (4) above, the lesser of (x) the fair market value of any asset subject to a Lien securing the Indebtedness of others on the date that the Lien attaches and (y) the amount of the Indebtedness secured.
"Intercreditor Agreement" means the Intercreditor Agreement dated on or about the Issue Date among the Collateral Agent, the Administrative Agent, the Trustee, Wilmington Trust Company, the Issuer, the Company and each other Guarantor named therein, as such agreement may be amended, restated, supplemented or otherwise modified from time to time.
"Interest Expense" of any Person for any period means, without duplication, the aggregate amount of (i) interest which, in conformity with GAAP, would be set opposite the caption "interest expense" or any like caption on an income statement for such Person (including, without limitation, imputed interest included in Capitalized Lease Obligations, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers' acceptance financing, the net costs (but reduced by net gains) associated with Currency Agreements and Interest Protection Agreements, amortization of other financing fees and expenses, the interest portion of any deferred payment obligation, amortization of discount or premium, if any, and all other noncash interest expense (other than interest and other charges amortized to cost of sales)), and (ii) all interest actually paid by the Company or a Restricted Subsidiary under any guarantee of Indebtedness (including, without limitation, a guarantee of principal, interest or any combination thereof) of any Person other than the Company, the Issuer or any Restricted Subsidiary during such period; provided, that Interest Expense shall exclude any expense associated with the complete write-off of financing fees and expenses in connection with the repayment of any Indebtedness.
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"Interest Incurred" of any Person for any period means, without duplication, the aggregate amount of (1) Interest Expense and (2) all capitalized interest and amortized debt issuance costs.
"Interest Protection Agreement" of any Person means any interest rate swap agreement, interest rate collar agreement, option or futures contract or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in interest rates with respect to Indebtedness permitted to be incurred under the Indenture.
"Investments" of any Person means (i) all investments by such Person in any other Person in the form of loans, advances or capital contributions, (ii) all guarantees of Indebtedness or other obligations of any other Person by such Person, (iii) all purchases (or other acquisitions for consideration) by such Person of Indebtedness, Capital Stock or other securities of any other Person and (iv) all other items that would be classified as investments in any other Person (including, without limitation, purchases of assets outside the ordinary course of business) on a balance sheet of such Person prepared in accordance with GAAP.
"Issue Date" means May 27, 2008.
"Lien" means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such Property. For purposes of this definition, a Person shall be deemed to own, subject to a Lien, any Property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such Property.
"Marketable Securities" means (a) equity securities that are listed on the New York Stock Exchange, the American Stock Exchange or The Nasdaq Stock Market and (b) debt securities that are rated by a nationally recognized rating agency, listed on the New York Stock Exchange or the American Stock Exchange or covered by at least two reputable market makers.
"Moody's" means Moody's Investors Service, Inc. or any successor to its debt rating business.
"Mortgage Subsidiary" means any Subsidiary of the Company substantially all of whose operations consist of the mortgage lending business.
"Net Cash Proceeds" means with respect to an Asset Disposition, payments received in cash (including any such payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise (including any cash received upon sale or disposition of such note or receivable), but only as and when received), excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the Property disposed of in such Asset Disposition or received in any other non-cash form unless and until such non-cash consideration is converted into cash therefrom, in each case, net of all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all federal, state and local taxes required to be accrued as a liability under GAAP as a consequence of such Asset Disposition, and in each case net of a reasonable reserve for the after-tax cost of any indemnification or other payments (fixed and contingent) attributable to the seller's indemnities or other obligations to the purchaser undertaken by the Company, the Issuer or any of its Restricted Subsidiaries in connection with such Asset Disposition, and net of all payments made on any Indebtedness which is secured by or relates to such Property (other than Indebtedness secured by Liens on the Collateral) in accordance with the terms of any Lien or agreement upon or with respect to such Property or which such Indebtedness must by its terms or by applicable law be repaid out of the proceeds from such Asset Disposition, and net of all contractually required distributions and payments made to minority interest holders in Restricted Subsidiaries or joint ventures as a result of such Asset Disposition.
"Non-Recourse Indebtedness" with respect to any Person means Indebtedness of such Person for which (1) the sole legal recourse for collection of principal and interest on such Indebtedness is against
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the specific property identified in the instruments evidencing or securing such Indebtedness and such property was acquired with the proceeds of such Indebtedness or such Indebtedness was incurred within 90 days after the acquisition of such property and (2) no other assets of such Person may be realized upon in collection of principal or interest on such Indebtedness. Indebtedness which is otherwise Non-Recourse Indebtedness will not lose its character as Non-Recourse Indebtedness because there is recourse to the borrower, any guarantor or any other Person for (a) environmental warranties and indemnities, or (b) indemnities for and liabilities arising from fraud, misrepresentation, misapplication or non-payment of rents, profits, insurance and condemnation proceeds and other sums actually received by the borrower from secured assets to be paid to the lender, waste and mechanics' liens.
"Notes" means the 111/2% Senior Secured Notes due 2013 offered pursuant to this prospectus.
"Obligations" means with respect to any Indebtedness, all obligations (whether in existence on the Issue Date or arising afterwards, absolute or contingent, direct or indirect) for or in respect of principal (when due, upon acceleration, upon redemption, upon mandatory repayment or repurchase pursuant to a mandatory offer to purchase, or otherwise), premium, interest, penalties, fees, indemnification, reimbursement and other amounts payable and liabilities with respect to such Indebtedness, including all interest accrued or accruing after the commencement of any bankruptcy, insolvency or reorganization or similar case or proceeding at the contract rate (including, without limitation, any contract rate applicable upon default) specified in the relevant documentation, whether or not the claim for such interest is allowed as a claim in such case or proceeding.
"Permitted Hovnanian Holders" means, collectively, Kevork S. Hovnanian, Ara K. Hovnanian, the members of their immediate families, the respective estates, spouses, heirs, ancestors, lineal descendants, legatees and legal representatives of any of the foregoing and the trustee of any bona fide trust of which one or more of the foregoing are the sole beneficiaries or the grantors thereof, or any entity of which any of the foregoing, individually or collectively, beneficially own more than 50% of the Common Equity.
"Permitted Indebtedness" means
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"Permitted Investment" means
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"Permitted Liens" means
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Refinancing Indebtedness in respect thereof (which Refinancing Indebtedness is incurred under such clause (1)), (ii) up to an additional $25.0 million of Indebtedness otherwise permitted to be incurred under the Indenture (and all Obligations, including letters of credit and similar instruments, incurred, issued or arising thereunder) and Liens securing Refinancing Indebtedness in respect thereof and (iii) Obligations under Currency Agreements and Interest Protection Agreements entered into with agents or lenders under the Indebtedness referred to in clause (i) or their affiliates, which Liens incurred under this clause (b) may be on a first-lien priority basis compared to the Notes on terms as set forth in the Intercreditor Agreement (collectively, "First-Priority Lien Obligations"); and
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Liens; provided, further, that no Liens may be incurred under this clause (19) in respect of Refinancing Indebtedness incurred to refinance Indebtedness that is secured by Liens incurred under clause (9)(b)(i) or (ii) above (it being understood that Liens incurred in respect of such Indebtedness may only be refinanced under such clause (9)(b)(i) or (ii)),
"Person" means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.
"Preferred Stock" of any Person means all Capital Stock of such Person which has a preference in liquidation or with respect to the payment of dividends.
"Property" of any Person means all types of real, personal, tangible, intangible or mixed property owned by such Person, whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries under GAAP.
"Purchase Money Indebtedness" means Indebtedness of the Company, the Issuer or any Restricted Subsidiary incurred for the purpose of financing all or any part of the purchase price, or the cost of construction or improvement, of any property to be used in the ordinary course of business by the Company, the Issuer and the Restricted Subsidiaries; provided, however, that (1) the aggregate principal amount of such Indebtedness shall not exceed such purchase price or cost and (2) such Indebtedness shall be incurred no later than 90 days after the acquisition of such property or completion of such construction or improvement.
"Qualified Stock" means Capital Stock of the Company other than Disqualified Stock.
"Real Estate Business" means homebuilding, housing construction, real estate development or construction and the sale of homes and related real estate activities, including the provision of mortgage financing or title insurance.
"Refinancing Indebtedness" means Indebtedness (to the extent not Permitted Indebtedness) that refunds, refinances or extends any Indebtedness of the Company, the Issuer or any Restricted Subsidiary (to the extent not Permitted Indebtedness) outstanding on the Issue Date or other
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Indebtedness (to the extent not Permitted Indebtedness) permitted to be incurred by the Company, the Issuer or any Restricted Subsidiary pursuant to the terms of the Indenture, but only to the extent that:
"Restricted Investment" means any Investment other than a Permitted Investment.
"Restricted Payment" means any of the following:
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"Restricted Subsidiary" means any Subsidiary of the Company which is not an Unrestricted Subsidiary.
"Revolving Credit Agreement" means that certain Seventh Amended and Restated Credit Agreement dated as of March 7, 2008, as amended by Amendment No. 1 thereto dated May 16, 2008 among the Issuer, the Company, the Administrative Agent, and a syndicate of lenders, as may be amended, restated, renewed, modified, refunded, replaced, revised, restructured or refinanced in whole or in part from time to time, including to extend the maturity thereof, to increase the amount of commitments thereunder (provided that any such increase is permitted under the covenant described under "—Certain covenants—Limitations on indebtedness"), or to add Restricted Subsidiaries as additional borrowers or guarantors thereunder, whether by the same or any other agent, lender or group of lenders or investors and whether such revision, restructuring, amendment, restatement, refunding, renewal, modification, replacement or refinancing is under one or more credit facilities or commercial paper facilities, indentures or other agreements, in each case with banks or other institutional lenders or trustees or investors providing for revolving credit loans, term loans, notes or letters or credit, together with related documents thereto (including, without limitation, any guaranty agreements and security documents).
"S&P" means Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc., a New York corporation, or any successor to its debt rating business.
"Second-Priority Lien Obligations" means all Indebtedness and other obligations with respect to the Notes and the Guarantees.
"Security Documents" means (i) the Intercreditor Agreement and (ii) the security documents granting a security interest in any assets of any Person to secure the Obligations under the Notes and the Guarantees as each may be amended, restated, supplemented or otherwise modified from time to time.
"Significant Subsidiary" means any Subsidiary of the Company which would constitute a "significant subsidiary" as defined in Rule 1-02(w)(1) or (2) of Regulation S-X under the Securities Act and the Exchange Act as in effect on the Issue Date.
"Subordinated Indebtedness" means Indebtedness subordinated in right of payment to the Notes pursuant to a written agreement and includes any Indebtedness ranking equally in right of payment to the Notes but unsecured or secured by the Collateral on a basis entirely junior to that of the Notes.
"Subsidiary" of any Person means any corporation or other entity of which a majority of the Capital Stock having ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions is at the time directly or indirectly owned or controlled by such Person.
"Trustee" means the party named as such above until such time, if any, a successor replaces such party in accordance with the applicable provisions of the Indenture and thereafter means the successor serving as trustee under the Indenture in respect of the Notes.
"Unrestricted Subsidiary" means any Subsidiary of the Company so designated by a resolution adopted by the Board of Directors of the Company or a duly authorized committee thereof as provided below; provided that (a) the holders of Indebtedness thereof do not have direct or indirect recourse against the Company, the Issuer or any Restricted Subsidiary, and neither the Company, the Issuer nor any Restricted Subsidiary otherwise has liability for, any payment obligations in respect of such Indebtedness (including any undertaking, agreement or instrument evidencing such Indebtedness), except, in each case, to the extent that the amount thereof constitutes a Restricted Payment permitted by the Indenture, in the case of Non-Recourse Indebtedness, to the extent such recourse or liability is for the matters discussed in the last sentence of the definition of "Non-Recourse Indebtedness," or to
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the extent such Indebtedness is a guarantee by such Subsidiary of Indebtedness of the Company, the Issuer or a Restricted Subsidiary and (b) no holder of any Indebtedness of such Subsidiary shall have a right to declare a default on such Indebtedness or cause the payment thereof to be accelerated or payable prior to its stated maturity as a result of a default on any Indebtedness of the Company, the Issuer or any Restricted Subsidiary. As of the Issue Date, our home mortgage subsidiaries, our joint ventures and certain of our title insurance subsidiaries are designated as Unrestricted Subsidiaries under the Indenture.
Subject to the foregoing, the Board of Directors of the Company or a duly authorized committee thereof may designate any Subsidiary in addition to those named above to be an Unrestricted Subsidiary; provided, however, that (1) the net amount (the "Designation Amount") then outstanding of all previous Investments by the Company and the Restricted Subsidiaries in such Subsidiary will be deemed to be a Restricted Payment at the time of such designation and will reduce the amount available for Restricted Payments under the "Limitations on restricted payments" covenant set forth in the Indenture, to the extent provided therein, (2) the Company must be permitted under the "Limitations on restricted payments" covenant set forth in the Indenture to make the Restricted Payment deemed to have been made pursuant to clause (1), and (3) after giving effect to such designation, no Default or Event of Default shall have occurred or be continuing. In accordance with the foregoing, and not in limitation thereof, Investments made by any Person in any Subsidiary of such Person prior to such Person's merger with the Company or any Restricted Subsidiary (but not in contemplation or anticipation of such merger) shall not be counted as an Investment by the Company or such Restricted Subsidiary if such Subsidiary of such Person is designated as an Unrestricted Subsidiary.
The Board of Directors of the Company or a duly authorized committee thereof may also redesignate an Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that (1) the Indebtedness of such Unrestricted Subsidiary as of the date of such redesignation could then be incurred under the "Limitations on indebtedness" covenant and (2) immediately after giving effect to such redesignation and the incurrence of any such additional Indebtedness, the Company and the Restricted Subsidiaries could incur $1.00 of additional Indebtedness under the first paragraph of the "Limitations on indebtedness" covenant. Any such designation or redesignation by the Board of Directors of the Company or a committee thereof will be evidenced to the Trustee by the filing with the Trustee of a certified copy of the resolution of the Board of Directors of the Company or a committee thereof giving effect to such designation or redesignation and an Officers' Certificate certifying that such designation or redesignation complied with the foregoing conditions and setting forth the underlying calculations of such Officers' Certificate. The designation of any Person as an Unrestricted Subsidiary shall be deemed to include a designation of all Subsidiaries of such Person as Unrestricted Subsidiaries; provided, however, that the ownership of the general partnership interest (or a similar member's interest in a limited liability company) by an Unrestricted Subsidiary shall not cause a Subsidiary of the Company of which more than 95% of the equity interest is held by the Company or one or more Restricted Subsidiaries to be deemed an Unrestricted Subsidiary.
"Weighted Average Life to Maturity" means, when applied to any Indebtedness or portion thereof at any date, the number of years obtained by dividing (i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including, without limitation, payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment by (ii) the sum of all such payments described in clause (i)(a) above.
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Concerning the Trustee
The Indenture contains certain limitations on the rights of the Trustee, should it become a creditor of the Company, to obtain payment of claims in certain cases, or to realize on certain property received in respect of any such claim as security or otherwise. The Trustee will be permitted to engage in other transactions; however, if it acquires any conflicting interest during the continuance of any Default, it must, so long as such Default has not been cured or duly waived, eliminate that conflicting interest within 90 days, apply to the Commission for permission to continue or resign.
The holders of a majority in principal amount of the Notes then outstanding will have the right to direct the Trustee, subject to certain exceptions. The Indenture provides that in case an Event of Default shall occur (which shall not be cured), the Trustee will be required, in the exercise of its power, to use the degree of care of a prudent man in the conduct of his own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any holder of Notes, unless that holder shall have offered to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.
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EXCHANGE OFFER; REGISTRATION RIGHTS
The Issuer, the Company, the other guarantors party thereto and the initial purchasers of the outstanding notes entered into a registration rights agreement on May 27, 2008, which we refer to as the "Registration Rights Agreement." Pursuant to the Registration Rights Agreement, the Issuer, the Company and the other guarantors party thereto agreed to file with the SEC the Exchange Offer Registration Statement on the appropriate form under the Securities Act with respect to the exchange offer. Upon the effectiveness of the Exchange Offer Registration Statement and pursuant to the exchange offer, the Issuer will offer to the holders of Transfer Restricted Securities (as defined below) who are able to make certain representations the opportunity to exchange their Transfer Restricted Securities for exchange notes. Capitalized terms used in this section but not otherwise defined have the meanings given to them in the Registration Rights Agreement.
Under the Registration Rights Agreement:
In the event that:
then, the Issuer, the Company and the other guarantors have agreed to file with the SEC a Shelf Registration Statement to cover resales of the notes by the holders thereof who satisfy certain conditions relating to the provisions of information in connection with the Shelf Registration Statement.
The Company, the Issuer and the other guarantors have agreed to use their reasonable best efforts to cause the applicable registration statement to be declared effective as promptly as possible by the SEC.
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For purposes of the preceding, "Transfer Restricted Securities" means:
The Issuer, the Company and other guarantors have agreed to pay additional interest to each holder of Transfer Restricted Securities upon the occurrence of any of the following:
We refer to each event referred to in clauses (1) through (4) above as a "Registration Default."
Such additional interest shall be:
All accrued additional interest will be paid on each Interest Payment Date at the same time and in the same manner as interest. Following the cure of all Registration Defaults, the accrual of additional interest will cease. Additional interest will only be payable in respect of one Registration Default at any time.
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Holders of Transfer Restricted Securities will be required to make certain representations to the Issuer, the Company and the other guarantors (as described in the Registration Rights Agreement) in order to participate in the Exchange Offer and will be required to deliver certain information to be used in connection with the Shelf Registration Statement and to provide comments on the Shelf Registration Statement within the time periods set forth in the Registration Rights Agreement in order to have their notes included in the Shelf Registration Statement and to benefit from the provisions regarding additional interest set forth above with respect to the Shelf Registration Statement.
The outstanding notes and the exchange notes will constitute a single series of debt securities under the Indenture. If an Exchange Offer is consummated, holders of outstanding notes who do not exchange their outstanding notes in that Exchange Offer will vote together with the holders of the exchange notes for all relevant purposes under the Indenture. Accordingly, when determining whether the required holders have given notice, consent or waiver or taken any other action permitted under the Indenture, any outstanding notes that remain outstanding after the Exchange Offer will be aggregated with the exchange notes. All references herein to specified percentages in aggregate principal amount of notes outstanding shall be deemed to mean, at any time after the Exchange Offer is consummated, percentages in aggregate principal amount of outstanding notes and exchange notes outstanding.
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Book-Entry Procedures for the Global Notes
The exchange notes will initially be represented in the form of one or more global notes in fully-registered book-entry form without interest coupons that will be deposited upon issuance with the trustee under the indenture, Wilmington Trust Company, as custodian for The Depository Trust Company, or "DTC," and registered in the name of DTC or its nominee, in each case for credit to an account of a direct or indirect participant as described below.
Except as set forth below, the global notes may be transferred, in whole and not in part, only to another nominee of DTC or to a successor of DTC or its nominee. Beneficial interests in the global notes may not be exchanged for notes in certificated form except in the limited circumstances described below. See "—Exchange of Global Notes for Certificated Notes." In addition, transfer of beneficial interests in the global notes will be subject to the applicable rules and procedures of DTC and its direct or indirect participants, which may change from time to time. The notes may be presented for registration of transfer and exchange at the Corporate Trust Office of the trustee.
Depositary Procedures
DTC has advised the Issuer that it is a limited-purpose trust company created to hold securities for its participating organizations (collectively, the "Participants") and to facilitate the clearance and settlement of transactions in those securities between Participants through electronic book-entry changes in accounts of Participants. The Participants include securities brokers and dealers (including the initial purchasers of the outstanding notes), banks, trust companies, clearing corporations and certain other organizations. Access to DTC's system is also available to other entities such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a Participant, either directly or indirectly (collectively, the "Indirect Participants"). Persons who are not Participants may beneficially own securities held by or on behalf of DTC only through the Participants or the Indirect Participants. The ownership interest and transfer of ownership interest of each actual purchaser of each security held by or on behalf of DTC are recorded on the records of the Participants and Indirect Participants.
DTC has also advised the Issuer that, pursuant to procedures established by it,
The laws of some states require that certain persons take physical delivery in definitive form of securities they own. Consequently, the ability to transfer beneficial interest in a global note to such persons may be limited to that extent. Because DTC can act only on behalf of Participants, which in turn act on behalf of Indirect Participants and certain banks, the ability of a person having a beneficial interest in a global note to pledge such interest to persons or entities that do not participate in the DTC system, or otherwise take actions in respect of such interests, may be affected by the lack of physical certificate evidencing such interests. For certain other restrictions on the transferability of the notes, see "—Exchange of Global Notes for Certificated Notes."
Except as described below, owners of interests in the global notes will not have notes registered in their names, will not receive physical delivery of notes in certificated form and will not be considered the registered owners or holders thereof under the indenture for any purpose.
Payments in respect of the principal and premium and additional interest, if any, and interest on a global note registered in the name of DTC or its nominee will be payable by the trustee to DTC or its
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nominee in its capacity as the registered holder under the indenture. Under the terms of the indenture, the indenture and the trustee will treat the persons in whose names the notes, including the global notes, are registered as the owners thereof for the purpose of receiving such payments and for any and all other purposes whatsoever.
Consequently, none of the Issuer, the trustee nor any agent of the Issuer or the trustee has or will have any responsibility or liability for:
DTC has advised the Issuer that its current practice, upon receipt of any payment in respect of securities such as the exchange notes (including principal and interest), is to credit the accounts of the relevant Participants with the payment on the payment date unless DTC has reason to believe that it will not receive payment on such payment date. Each relevant Participant is credited with an amount proportionate to its beneficial ownership of an interest in the principal amount of the relevant security as shown on the records of DTC. Payments by Participants and the Indirect Participants to the beneficial owners of exchange notes will be governed by standing instructions and customary practices and will be the responsibility of the Participants or the Indirect Participants and will not be the responsibility of DTC, the trustee or the Issuer. Neither the Issuer nor the trustee will be liable for any delay by DTC or any of its Participants in identifying the beneficial owners of the exchange notes, and the Issuer and the trustee may conclusively rely on and will be protected in relying on instructions from DTC or its nominee for all purposes.
Except for trades involving only Euroclear and Clearstream participants, interests in the global notes will trade in DTC's Same-Day Funds Settlement System and secondary market trading activity in such interests will therefore settle in immediately available funds, subject in all cases to the rules and procedures of DTC and its participants.
Transfers between Participants in DTC will be effected in accordance with DTC's procedures, and will be settled in same-day funds. Transfers between participants in Euroclear and Clearstream will be effected in the ordinary way in accordance with their respective rules and operating procedures.
Subject to compliance with the transfer restrictions applicable to the notes described herein, crossmarket transfers between Participants in DTC, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be effected through DTC in accordance with DTC's rules on behalf of Euroclear or Clearstream, as the case may be, by its respective depositary; however, such cross-market transactions will require delivery of instructions to Euroclear or Clearstream, as the case may be, by the counterparty in such system in accordance with the rules and procedures and within the established deadlines (Brussels time) of such system. Euroclear or Clearstream, as the case may be, will, if the transaction meets its settlement requirements, deliver instructions to its respective depositary to take action to effect final settlement on its behalf by delivering or receiving interests in the relevant global note in DTC, and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Euroclear and Clearstream participants may not deliver instructions directly to the depositaries for Euroclear or Clearstream.
Because of time zone differences, the securities accounts of a Euroclear or Clearstream Participant purchasing an interest in a note from a Participant in DTC will be credited, and any such crediting will be reported to the relevant Euroclear or Clearstream Participant, during the securities settlement processing day (which must be a business day for Euroclear or Clearstream) immediately following the settlement date of DTC. Cash received in Euroclear or Clearstream as a result of sales of interests in
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an exchange note by or through a Euroclear or Clearstream Participant to a Participant in DTC will be received with value on the settlement date of DTC but will be available in the relevant Euroclear or Clearstream cash account only as of the business day for Euroclear or Clearstream following DTC's settlement date. DTC has advised the Issuer that it will take any action permitted to be taken by a holder of exchange notes only at the direction of one or more Participants to whose account DTC interests in the global notes are credited and only in respect of such portion of the aggregate principal amount of the notes as to which such Participant or Participants has or have given direction. However, if there is an Event of Default under the notes, DTC reserves the right to exchange global notes for legended exchange notes in certificated form, and to distribute such exchange notes to its Participants.
The information in this section concerning DTC, Euroclear and Clearstream and their book-entry systems has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof.
Although DTC, Euroclear and Clearstream have agreed to the foregoing procedures to facilitate transfers of interests in the global notes among Participants in DTC, Euroclear and Clearstream, they are under no obligation to perform or to continue to perform such procedures, and such procedures may be discontinued at any time. None of the Issuer, the initial purchasers of the outstanding notes or the trustee will have any responsibility for the performance by DTC, Euroclear or Clearstream or their respective Participants or Indirect Participants of their respective obligations under the rules and procedures governing their operations.
Exchange of Global Notes for Certificated Notes
A global note is exchangeable for a certificated exchange note if:
In addition, beneficial interests in a global note may be exchanged for certificated exchange notes upon request but only upon at least 20 days' prior written notice given to the trustee by or on behalf of DTC in accordance with customary procedures. In all cases, certificated exchange notes delivered in exchange for any global note or beneficial interest therein will be registered in the names, and issued in any approved denominations, requested by or on behalf of the depositary (in accordance with its customary procedures).
Same Day Settlement And Payment
The indenture requires that payments in respect of notes represented by the global notes (including principal, premium, if any, interest and additional interest, if any) be made by wire transfer of immediately available funds to the accounts specified by DTC or its nominee. With respect to certificated notes, we will make all payments of principal, premium, if any, interest and additional interest, if any, by wire transfer of immediately available funds to the accounts specified by the holders thereof or, if no such account is specified, by mailing a check to each such holder's registered address. The notes represented by the global notes are expected to be eligible to trade in PORTAL and to trade in DTC's Same-Day Funds Settlement System, and any permitted secondary market trading activity in such notes will, therefore, be required by DTC to be settled in immediately available funds. We expect that secondary trading in any certificated notes will also be settled in immediately available funds.
93
UNITED STATES FEDERAL INCOME TAX CONSEQUENCES
OF THE EXCHANGE OFFER
The exchange of outstanding notes for exchange notes in the exchange offer will not constitute a taxable event to holders for United States federal income tax purposes. Consequently, no gain or loss will be recognized by a holder upon receipt of an exchange note, the holding period of the exchange note will include the holding period of the outstanding note exchanged therefor, and the basis of the exchange note will be the same as the basis of the outstanding note immediately before the exchange.
In any event, persons considering the exchange of outstanding notes for exchange notes should consult their own tax advisors concerning the United States federal income tax consequences in light of their particular situations as well as any consequences arising under the laws of any other taxing jurisdiction.
94
Each broker-dealer that receives exchange notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of the exchange notes. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notes received in exchange for outstanding notes where the outstanding notes were acquired as a result of market-making activities or other trading activities. To the extent that any such broker-dealer participates in the exchange offer and so notifies us, or causes us to be so notified in writing, we have agreed that for a period of up to 180 days after the consummation of this offer to use our best efforts to make this prospectus, as amended or supplemented, available to such broker-dealer for use in connection with any such resale and will deliver as many additional copies of this prospectus and each amendment or supplement to this prospectus and any documents incorporated by reference in this prospectus as such broker-dealer may reasonably request.
We will not receive any proceeds from any sale of exchange notes by broker-dealers. Exchange notes received by broker-dealers for their own accounts pursuant to the exchange offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the exchange notes or a combination of these methods of resale at market prices prevailing at the time of resale, at prices related to the prevailing market prices or at negotiated prices. Any resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any broker-dealer or the purchasers of any exchange notes. Any broker-dealer that resells exchange notes that were received by it for its own account pursuant to the exchange offer and any broker or dealer that participates in a distribution of the exchange notes may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit on any resale of exchange notes and any commissions or concessions received by these persons may be deemed to be underwriting compensation under the Securities Act. The letter of transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act.
We have also agreed to pay all expenses incident to the exchange offer, including the expenses of one counsel for the holders of all of the sellers of the outstanding notes, and will indemnify the holders of the outstanding notes, including any broker-dealers, against certain liabilities under the Securities Act.
95
The validity of the exchange notes offered hereby will be passed upon for us by Simpson Thacher & Bartlett LLP, New York, New York.
The consolidated financial statements of Hovnanian Enterprises, Inc. appearing in Hovnanian Enterprises, Inc.'s Annual Report (Form 10-K) for the year ended October 31, 2007 and the effectiveness of Hovnanian Enterprises, Inc.'s internal control over financial reporting as of October 31, 2007, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
We are subject to the informational requirements of the Securities Exchange Act of 1934, and file reports, proxy statements and other information with the SEC. We have also filed a registration statement on Form S-4 with the SEC. This prospectus, which forms a part of the registration statement, does not have all the information contained in the registration statement. You may read, free of charge, and copy, at the prescribed rates, any reports, proxy statements and other information, including the registration statement, at the SEC's public reference room at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the public reference room by calling the SEC at 1-800-SEC-0330. Copies of such material also can be obtained by mail from the Public Reference Section of the SEC, at 100 F Street, N.E., Washington, D.C. 20549, at the prescribed rates. The SEC also maintains a website that contains reports, proxy and information statements and other information, including the registration statement. The website address is: http://www.sec.gov. Hovnanian's Class A common stock is listed on the New York Stock Exchange, and reports, proxy statements and other information also can be inspected at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
This prospectus is part of a registration statement filed with the SEC. The SEC allows us to "incorporate by reference" selected
documents we file with it, which means that we can disclose important information to you by referring you to those documents. The information in the documents incorporated by reference is considered
to be part of this prospectus, and information in documents that we file later with the SEC will automatically update and supersede this information. We incorporate by reference the documents listed
below filed by Hovnanian under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act.
All documents filed by Hovnanian pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this prospectus and prior to the termination of the offering made by this
96
prospectus are to be incorporated herein by reference. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is incorporated or deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
97
$600,000,000
K. Hovnanian Enterprises, Inc.
Guaranteed by
Hovnanian Enterprises, Inc.
Offer to Exchange All Outstanding
111/2% Senior Secured Notes due 2013
($600,000,000 aggregate principal amount outstanding)
for 111/2% Senior Secured Notes due 2013, which have been registered
under the Securities Act of 1933
Until , all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters with respect to their unsold allotments or subscriptions.
PROSPECTUS
, 2008
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 20. Indemnification of Directors and Officers.
Hovnanian is a Delaware corporation. Section 145 of the General Corporation Law of the State of Delaware grants each corporation organized thereunder the power to indemnify any person who is or was a director, officer, employee or agent of a corporation or enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, other than an action by or in the right of the corporation, by reason of being or having been in any such capacity, if he acted in good faith in a manner reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Section 102(b)(7) of the General Corporation Law of the State of Delaware enables a corporation in its certificate of incorporation or an amendment thereto validly approved by stockholders to limit or eliminate the personal liability of the members of its board of directors for violations of the directors' fiduciary duty of care.
Article FOUR of Hovnanian's Restated By-Laws contains the following provisions with respect to indemnification:
The Corporation shall indemnify any current or former Director or officer of the Corporation and his heirs, executors and administrators, and may, at the discretion of the Board of Directors, indemnify any current or former employee or agent of the Corporation and his heirs, executors and administers, against all expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonable incurred by him or by his heirs, executors and administrators in connection with any threatened, pending or completed action, suit or proceeding (brought by or in tire right of the Corporation or otherwise), whether civil, criminal, administrative or investigative, and whether formal or informal, including appeals, to which he was or is a party or is threatened to be made a party by reason of his current or former position with the Corporation or by reason of the fact that he is or was serving, at the request of the Corporation, as a director, officer, partner, trustee, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.
K. Hovnanian is a California corporation. Section 317 of the California Corporations Code provides that a corporation has the power to indemnify any person who was or is a party or is threatened to be made a party to any proceeding, other than in an action by or on behalf of the corporation to obtain a favorable judgment for itself, because such person is or was an agent of the corporation, against expenses actually and reasonably incurred in connection with the proceeding, if the person acted in good faith and in a manner the person reasonably believed to be in the best interests of the corporation and, in the case of criminal proceedings, had no reasonable cause to believe that the conduct was unlawful. In the case of suits by or on behalf of a corporation to obtain a judgment in its favor, a corporation has the power to indemnify any person who was or is a party or is threatened to be made a party to such proceeding because such person is or was the corporation's agent, against expenses actually and reasonably incurred if the person acted in good faith in a manner the person believed to be in the best interests of the corporation and its shareholders, except that no such indemnification may be made for claims as to which the person shall have been adjudged to be liable to the corporation in the performance of that person's duty to the corporation, unless and then only to the extent a court determines otherwise.
II-1
Article FIFTH of K. Hovnanian's Articles of Incorporation contains the following provisions with respect to indemnification:
The Corporation is authorized, to the fullest extent permissible under California law, to indemnify its agents (as defined by Section 317 of the California Corporations Code) whether by bylaw, agreement or otherwise, for breach of duty to the Corporation and its shareholders in excess of that expressly permitted by California Code Section 317, and to advance defense expenses to its agents in connection with such matters as those expenses are incurred; provided, indemnification shall not be provided for any acts or omissions or transactions from which pursuant to applicable statute(s) a director may not be relieved of liability nor under circumstances in which indemnity is expressly prohibited by the statute covering the indemnification of agents.
Hovnanian maintains a liability insurance policy providing coverage for its directors and officers, the directors and officers of K. Hovnanian and the directors and officers of certain of its other subsidiaries in an amount up to $50,000,000.
| 3.1 | Articles of Incorporation of K. Hovnanian Enterprises, Inc.(1) | ||
3.2 |
By-Laws of K. Hovnanian Enterprises, Inc. (filed herewith) |
||
3.3 |
Certificate of Incorporation of Hovnanian Enterprises, Inc.(13) |
||
3.4 |
Restated By-Laws of Hovnanian Enterprises, Inc.(7) |
||
3.5 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in New Jersey.(1) |
||
3.6 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in New York.(1) |
||
3.7 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Pennsylvania.(1) |
||
3.8 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in North Carolina.(1) |
||
3.9 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in South Carolina.(1) |
||
3.10 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Virginia.(1) |
||
3.11 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Maryland.(1) |
||
3.12 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Delaware.(1) |
||
3.13 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in California.(1) |
||
3.14 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Texas.(1) |
||
3.15 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Arizona.(1) |
II-2
3.16 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Ohio.(1) |
||
3.17 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in West Virginia.(1) |
||
3.18 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Florida.(1) |
||
3.19 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Michigan.(1) |
||
3.20 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Tennessee.(1) |
||
3.21 |
Form of Articles of Organization for Subsidiary Registrant limited liability companies.(1) |
||
3.22 |
Form of Certificate of Limited Partnership for Subsidiary Registrant limited partnerships.(1) |
||
3.23 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in New Jersey.(1) |
||
3.24 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in New York.(1) |
||
3.25 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Pennsylvania.(1) |
||
3.26 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in North Carolina.(1) |
||
3.27 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in South Carolina.(1) |
||
3.28 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Maryland.(1) |
||
3.29 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Virginia.(1) |
||
3.30 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Delaware.(1) |
||
3.31 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in California.(1) |
||
3.32 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Texas.(1) |
||
3.33 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Arizona.(1) |
||
3.34 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Ohio.(1) |
||
3.35 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in West Virginia.(1) |
||
3.36 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Florida.(1) |
||
3.37 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Michigan.(1) |
||
3.38 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Tennessee.(1) |
||
3.39 |
Form of Limited Liability Company Agreement for Subsidiary Registrant limited liability companies.(1) |
||
3.40 |
Form of Limited Partnership Agreement for Subsidiary Registrant limited partnerships.(1) |
||
3.41 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Minnesota.(4) |
||
3.42 |
Form of Certificate of Incorporation for Subsidiary Registrant corporations incorporated in Connecticut. (filed herewith) |
||
3.43 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Georgia. (filed herewith) |
II-3
3.44 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Illinois. (filed herewith) |
||
3.45 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Indiana. (filed herewith) |
||
3.46 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Kentucky. (filed herewith) |
||
3.47 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Washington, DC. (filed herewith) |
||
3.48 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Connecticut. (filed herewith) |
||
3.49 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Georgia. (filed herewith) |
||
3.50 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Illinois. (filed herewith) |
||
3.51 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Indiana. (filed herewith) |
||
3.52 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Kentucky. (filed herewith) |
||
3.53 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Washington, DC. (filed herewith) |
||
3.54 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Minnesota. (filed herewith) |
||
4.1 |
Indenture dated as of May 27, 2008, relating to 111/2% Senior Secured Notes due 2013, among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc. and the other Guarantors named therein and Deutsche Bank National Trust Company, as Trustee, including form of 111/2% Senior Secured Notes due 2013.(9) |
||
4.2 |
Registration Rights Agreement, dated as of May 27, 2008, by and among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc., certain of its subsidiaries and Credit Suisse Securities (USA) LLC, Banc of America Securities LLC, J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC on behalf of themselves and the several other initial purchasers. (filed herewith) |
||
4.3 |
Certificate of Designations, Powers, Preferences and Rights of the 7.625% Series A Preferred Stock of Hovnanian Enterprises, Inc., dated July 12, 2005.(6) |
||
4.4 |
Certificate of Designations of the Series B Junior Preferred Stock of Hovnanian Enterprises, Inc., dated August 14, 2008.(13) |
||
4.5 |
Rights Agreement, dated as of August 14, 2008, between Hovnanian Enterprises, Inc. and National City Bank, as Rights Agent, which includes the Form of Certificate of Designation as Exhibit A, Form of Right Certificate as Exhibit B and the Summary of Rights as Exhibit C.(3) |
||
5.1 |
Opinion of Simpson Thacher & Bartlett LLP. (filed herewith) |
||
10.1 |
Seventh Amended and Restated Credit Agreement dated March 7, 2008.(8) |
||
10.2 |
Amendment No. 1 to Seventh Amended and Restated Credit Agreement dated as of May 16, 2008.(9) |
II-4
10.3 |
Guaranty and Suretyship Agreement, dated March 7, 2008.(8) |
||
10.4 |
Pledge Agreement, relating to the Amended Credit Agreement, dated as of March 7, 2008.(8) |
||
10.5 |
Amended and Restated Security Agreement, relating to the Amended Credit Agreement, dated as of May 27, 2008. (9) |
||
10.6 |
Intellectual Property Security Agreement, relating to the Amended Credit Agreement, dated as of May 27, 2008. (9) |
||
10.7 |
Intercreditor Agreement dated as of May 27, 2008.(9) |
||
10.8 |
Second Lien Pledge Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) |
||
10.9 |
Second Lien Security Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) |
||
10.10 |
Intellectual Property Security Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) |
||
10.11 |
Amended and Restated Hovnanian Enterprises, Inc. Senior Executive Short-Term Incentive Plan.(10) |
||
10.12 |
2008 Hovnanian Enterprises, Inc. Stock Incentive Plan.(11) |
||
10.13 |
Amended and Restated Hovnanian Enterprises, Inc. 1983 Stock Option Plan.(12) |
||
10.14 |
Description of Non-Employee Director Compensation.(13) |
||
10.15 |
Base Salaries of Executive Officers.(7) |
||
10.16 |
Description of Management Bonus Arrangements.(5) |
||
10.17 |
Description of Savings and Investment Retirement Plan.(2) |
||
10.18 |
Management Agreement dated August 12, 1983, for the management of properties by K. Hovnanian Investment Properties, Inc.(2) |
||
10.19 |
Management Agreement dated December 15, 1985, for the management of properties by K. Hovnanian Investment Properties, Inc.(5) |
||
10.20 |
Description of Deferred Compensation Plan.(5) |
||
10.21 |
Death and Disability Agreement between Hovnanian Enterprises, Inc. and Ara K. Hovnanian.(14) |
||
10.22 |
Form of Hovnanian Deferred Share Policy for Senior Executives.(14) |
||
10.23 |
Form of Hovnanian Deferred Share Policy.(14) |
||
10.24 |
Form of Non-Qualified Stock Option Agreement.(14) |
||
10.25 |
Form of Incentive Stock Option Agreement.(14) |
||
10.26 |
Form of Stock Option Agreement for Directors.(14) |
||
10.27 |
Form of Restricted Share Unit Agreement.(14) |
||
12.1 |
Statement re: Computation of Ratio of Earnings to Fixed Charges. (filed herewith) |
||
21.1 |
Subsidiaries of Hovnanian Enterprises, Inc. (filed herewith) |
||
23.1 |
Consent of Simpson Thacher & Bartlett LLP. (contained in Exhibit 5.1) |
II-5
23.2 |
Consent of Ernst & Young LLP. (filed herewith) |
||
24.1 |
Powers of Attorney of the Boards of Directors of K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc. and Subsidiary Registrants. (included on signature pages) |
||
25.1 |
Statement of Eligibility of Trustee under the Indenture filed as Exhibit 4.1 hereto. (filed herewith) |
||
99.1 |
Form of Letter of Transmittal. (filed herewith) |
||
99.2 |
Form of Letter to Dealers, Commercial Banks, Trust Companies and Other Nominees. (filed herewith) |
||
99.3 |
Form of Letter to Clients. (filed herewith) |
||
99.4 |
Form of Notice of Guaranteed Delivery. (filed herewith) |
II-6
The undersigned registrants hereby undertake:
The undersigned registrants undertake that in a primary offering of securities of the undersigned registrants pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrants will be sellers to the purchaser and will be considered to offer or sell such securities to such purchaser:
The undersigned registrants hereby undertake that, for purposes of determining any liability under the Securities Act of 1933, each filing of Hovnanian Enterprises, Inc.'s annual report pursuant to
II-7
Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrants pursuant to the foregoing provisions, or otherwise, the registrants have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrants of expenses incurred or paid by a director, officer or controlling person of the registrants in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrants will, unless in the opinion of their counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
The undersigned registrants hereby undertake to respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11, or 13 of this form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.
The undersigned registrants hereby undertake to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.
II-8
Pursuant to the requirements of the Securities Act of 1933, as amended, K. Hovnanian Enterprises, Inc. has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Red Bank, State of New Jersey, on September 19, 2008.
K. HOVNANIAN ENTERPRISES, INC. |
||||
By: |
/s/ J. LARRY SORSBY |
|||
|
J. Larry Sorsby Executive Vice President and Chief Financial Officer |
||||
Each person whose signature appears below hereby constitutes and appoints J. Larry Sorsby and Paul W. Buchanan and each of them, the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, including any filings pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and anything necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute, or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on September 19, 2008.
Signature
|
Title
|
|
|---|---|---|
/s/ ARA K. HOVNANIAN |
President, Chief Executive Officer and Director |
|
/s/ PAUL W. BUCHANAN |
Senior Vice President, Chief Accounting Officer and Director |
|
/s/ NICK PAPPAS |
Senior Vice President and Director |
|
/s/ J. LARRY SORSBY |
Executive Vice President, Chief Financial Officer and Director |
|
/s/ JOSEPH MANISCO |
Assistant Secretary and Director |
|
/s/ JOHN HADLEY |
Vice President, Finance & Administration and Director |
|
/s/ JIM REX |
Region President and Director |
II-9
Pursuant to the requirements of the Securities Act of 1933, as amended, Hovnanian Enterprises, Inc. has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Red Bank, State of New Jersey, on September 19, 2008.
HOVNANIAN ENTERPRISES, INC. |
||||
By: |
/s/ J. LARRY SORSBY |
|||
|
J. Larry Sorsby Executive Vice President and Chief Financial Officer |
||||
Each person whose signature appears below hereby constitutes and appoints J. Larry Sorsby and Paul W. Buchanan and each of them, the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, including any filings pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and anything necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute, or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on September 19, 2008.
Signature
|
Title
|
|
|---|---|---|
| /s/ KEVORK S. HOVNANIAN Kevork S. Hovnanian |
Chairman of the Board and Director | |
/s/ ARA K. HOVNANIAN Ara K. Hovnanian |
President, Chief Executive Officer, Vice-Chairman of the Board and Director |
|
/s/ J. LARRY SORSBY J. Larry Sorsby |
Executive Vice President, Chief Financial Officer, Treasurer and Director |
|
/s/ PAUL W. BUCHANAN Paul W. Buchanan |
Senior Vice President and Chief Accounting Officer |
|
/s/ JOSEPH A. MARENGI Joseph A. Marengi |
Director |
II-10
Signature
|
Title
|
|
|---|---|---|
| Robert B. Coutts |
Director | |
/s/ EDWARD A. KANGAS Edward A. Kangas |
Director |
|
/s/ JOHN J. ROBBINS John J. Robbins |
Director |
|
/s/ STEPHEN D. WEINROTH Stephen D. Weinroth |
Director |
II-11
Pursuant to the requirements of the Securities Act of 1933, as amended, K HOV IP, Inc. has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Red Bank, State of New Jersey, on September 19, 2008.
| K HOV IP, INC. | |||
By: |
/s/ PAUL W. BUCHANAN Paul W. Buchanan Senior Vice President, Chief Financial Officer, Chief Accounting Officer, Treasurer and Secretary |
||
Each person whose signature appears below hereby constitutes and appoints J. Larry Sorsby and Paul W. Buchanan and each of them, the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, including any filings pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and anything necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute, or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on September 19, 2008.
Signature
|
Title
|
|
|---|---|---|
| /s/ JIM REX Jim Rex |
President and Chief Executive Officer | |
/s/ NICK PAPPAS Nick Pappas |
Senior Vice President and Director |
|
/s/ PAUL W. BUCHANAN Paul W. Buchanan |
Senior Vice President, Chief Financial Officer, Chief Accounting Officer, Treasurer, Secretary and Director |
|
/s/ JOHN HADLEY John Hadley |
Vice President—Finance & Administration and Director |
|
/s/ JOSEPH MANISCO Joseph Manisco |
Assistant Secretary and Director |
|
/s/ MARCIA WINES Marcia Wines |
Vice President—Tax and Director |
II-12
Pursuant to the requirements of the Securities Act of 1933, as amended, K HOV IP, II, Inc. has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Red Bank, State of New Jersey, on September 19, 2008.
| K HOV IP, II, INC. | |||
By: |
/s/ PAUL W. BUCHANAN Paul W. Buchanan Senior Vice President, Chief Financial Officer, Chief Accounting Officer, Treasurer and Secretary |
||
Each person whose signature appears below hereby constitutes and appoints J. Larry Sorsby and Paul W. Buchanan and each of them, the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, including any filings pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and anything necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute, or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities indicated on September 19, 2008.
Name
|
Title
|
|
|---|---|---|
/s/ JIM REX |
President and Chief Executive Officer |
|
/s/ NICK PAPPAS |
Senior Vice President and Director |
|
/s/ PAUL W. BUCHANAN |
Senior Vice President, Chief Financial Officer, Chief |
|
/s/ JOHN HADLEY |
Vice President—Finance & Administration and Director |
|
/s/ JOSEPH MANISCO |
Assistant Secretary and Director |
|
/s/ MARCIA WINES |
Vice President—Tax and Director |
II-13
Pursuant to the requirements of the Securities Act of 1933, as amended, each of the Registrants, as listed on the attached Schedule of Subsidiary Registrants, has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Red Bank, State of New Jersey, on September 19, 2008.
| REGISTRANTS (as listed on the attached Schedule of Subsidiary Registrants) | |||
By: |
/s/ J. LARRY SORSBY J. Larry Sorsby Executive Vice President and Chief Financial Officer |
||
Each person whose signature appears below hereby constitutes and appoints J. Larry Sorsby and Paul W. Buchanan and each of them, the true and lawful attorneys-in-fact and agents of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of the undersigned, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, including any filings pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, and hereby grants to such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and anything necessary to be done, as fully to all intents and purposes as the undersigned might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute, or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons on the date and in the capacities indicated on September 19, 2008.
Signature
|
Title
|
|||
|---|---|---|---|---|
/s/ KEVORK S. HOVNANIAN |
Chairman of the Board and Director |
|||
/s/ |
President, Chief Executive Officer and Director |
|||
/s/ |
Senior Vice President, Chief Accounting Officer and Director |
|||
/s/ |
Senior Vice President, General Counsel and Director |
|||
/s/ |
Executive Vice President, Chief Financial Officer and Director |
|||
II-14
SCHEDULE OF SUBSIDIARY REGISTRANTS
Exact Name of Registrant As Specified in Its Charter
ALFORD, L.L.C. |
||||
AUDDIE ENTERPRISES, L.L.C. |
||||
BUILDER SERVICES NJ, L.L.C. |
||||
BUILDER SERVICES NY, L.L.C. |
||||
BUILDER SERVICES PA, L.L.C. |
||||
DULLES COPPERMINE, L.L.C. |
||||
EASTERN TITLE AGENCY, INC. |
||||
F&W MECHANICAL SERVICES, L.L.C. |
||||
FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C. |
||||
FOUNDERS TITLE AGENCY, INC. |
||||
GOVERNOR'S ABSTRACT CO., INC. |
||||
GREENWAY FARMS UTILITY ASSOCIATES, L.L.C. |
||||
HOMEBUYERS FINANCIAL SERVICES, L.L.C. |
||||
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF CALIFORNIA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF GEORGIA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF NORTH CAROLINA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF PENNSYLVANIA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF TEXAS, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP OF VIRGINIA, L.L.C. |
||||
HOVNANIAN LAND INVESTMENT GROUP, L.L.C. |
||||
HUDSON POINTE JOINT DEVELOPMENT, L.L.C. |
||||
K. HOV INTERNATIONAL, INC. |
||||
K. HOVNANIAN ACQUISITIONS, INC. |
||||
K. HOVNANIAN AT 3 CHAPMAN, L.L.C. |
||||
K. HOVNANIAN AT 4S, LLC |
||||
K. HOVNANIAN AT ABERDEEN URBAN RENEWAL, L.L.C. |
||||
K. HOVNANIAN AT ACQUA VISTA, LLC |
||||
K. HOVNANIAN AT ALISO, LLC |
II-15
K. HOVNANIAN AT ALLENBERRY, L.L.C. |
||||
K. HOVNANIAN AT ALLENDALE, L.L.C. |
||||
K. HOVNANIAN AT ALLENTOWN, L.L.C. |
||||
K. HOVNANIAN AT ARBOR HEIGHTS, LLC |
||||
K. HOVNANIAN AT AVENUE ONE, L.L.C. |
||||
K. HOVNANIAN AT BARNEGAT I, L.L.C. |
||||
K. HOVNANIAN AT BARNEGAT II, L.L.C. |
||||
K. HOVNANIAN AT BARNEGAT III, L.L.C. |
||||
K. HOVNANIAN AT BELLA LAGO, LLC |
||||
K. HOVNANIAN AT BERKELEY, L.L.C. |
||||
K. HOVNANIAN AT BERNARDS IV, INC. |
||||
K. HOVNANIAN AT BERNARDS V, L.L.C. |
||||
K. HOVNANIAN AT BLUE HERON PINES, L.L.C. |
||||
K. HOVNANIAN AT BRANCHBURG III, INC. |
||||
K. HOVNANIAN AT BRIDGEPORT, INC. |
||||
K. HOVNANIAN AT BRIDGEWATER I, L.L.C. |
||||
K. HOVNANIAN AT BRIDGEWATER VI, INC. |
||||
K. HOVNANIAN AT BRIDLEWOOD, L.L.C. |
||||
K. HOVNANIAN AT BROAD AND WALNUT, L.L.C. |
||||
K. HOVNANIAN AT BURLINGTON III, INC. |
||||
K. HOVNANIAN AT BURLINGTON, INC. |
||||
K. HOVNANIAN AT CALABRIA, INC. |
||||
K. HOVNANIAN AT CAMDEN I, L.L.C. |
||||
K. HOVNANIAN AT CAMERON CHASE, INC. |
||||
K. HOVNANIAN AT CAMP HILL, L.L.C. |
||||
K. HOVNANIAN AT CAPISTRANO, L.L.C. |
||||
K. HOVNANIAN AT CARMEL DEL MAR, INC. |
||||
K. HOVNANIAN AT CARMEL VILLAGE, LLC |
||||
K. HOVNANIAN AT CASTILE, INC. |
||||
K. HOVNANIAN AT CEDAR GROVE III, L.L.C. |
||||
K. HOVNANIAN AT CEDAR GROVE IV, L.L.C. |
||||
K. HOVNANIAN AT CHAPARRAL, INC. |
||||
K. HOVNANIAN AT CHESTER I, L.L.C. |
||||
K. HOVNANIAN AT CHESTERFIELD II, L.L.C. |
II-16
K. HOVNANIAN AT CHESTERFIELD, L.L.C. |
||||
K. HOVNANIAN AT CIELO, L.L.C. |
||||
K. HOVNANIAN AT CLARKSTOWN, INC. |
||||
K. HOVNANIAN AT CLIFTON II, L.L.C. |
||||
K. HOVNANIAN AT CLIFTON, L.L.C. |
||||
K. HOVNANIAN AT COASTLINE, L.L.C. |
||||
K. HOVNANIAN AT CORTEZ HILL, LLC |
||||
K. HOVNANIAN AT CRANBURY, L.L.C. |
||||
K. HOVNANIAN AT CRESTLINE, INC. |
||||
K. HOVNANIAN AT CURRIES WOODS, L.L.C. |
||||
K. HOVNANIAN AT DENVILLE, L.L.C. |
||||
K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT DOMINGUEZ HILLS, INC. |
||||
K. HOVNANIAN AT DOVER, L.L.C. |
||||
K. HOVNANIAN AT EAST BRANDYWINE, L.L.C. |
||||
K. HOVNANIAN AT EAST WHITELAND I, INC. |
||||
K. HOVNANIAN AT EASTLAKE, LLC |
||||
K. HOVNANIAN AT EDGEWATER II, L.L.C. |
||||
K. HOVNANIAN AT EDGEWATER, L.L.C. |
||||
K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT ELK TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT ENCINITAS RANCH, LLC |
||||
K. HOVNANIAN AT EVERGREEN, L.L.C. |
||||
K. HOVNANIAN AT EWING, L.L.C. |
||||
K. HOVNANIAN AT FIFTH AVENUE, L.L.C. |
||||
K. HOVNANIAN AT FLORENCE I, L.L.C. |
||||
K. HOVNANIAN AT FLORENCE II, L.L.C. |
||||
K. HOVNANIAN AT FOREST MEADOWS, L.L.C. |
||||
K. HOVNANIAN AT FORKS TWP. I, L.L.C. |
||||
K. HOVNANIAN AT FRANKLIN, L.L.C. |
||||
K. HOVNANIAN AT FREEHOLD TOWNSHIP I, INC. |
||||
K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT GALLOWAY, L.L.C. |
II-17
K. HOVNANIAN AT GASLAMP SQUARE, L.L.C. |
||||
K. HOVNANIAN AT GREAT NOTCH, L.L.C. |
||||
K. HOVNANIAN AT GUTTENBERG, L.L.C. |
||||
K. HOVNANIAN AT HACKETTSTOWN II, L.L.C. |
||||
K. HOVNANIAN AT HACKETTSTOWN, INC. |
||||
K. HOVNANIAN AT HAMBURG CONTRACTORS, L.L.C. |
||||
K. HOVNANIAN AT HAMBURG, L.L.C. |
||||
K. HOVNANIAN AT HAWTHORNE, L.L.C |
||||
K. HOVNANIAN AT HAZLET, L.L.C. |
||||
K. HOVNANIAN AT HERSHEY'S MILL, INC. |
||||
K. HOVNANIAN AT HIGHLAND SHORES, L.L.C. |
||||
K. HOVNANIAN AT HIGHLAND VINEYARDS, INC. |
||||
K. HOVNANIAN AT HIGHWATER, L.L.C. |
||||
K. HOVNANIAN AT HILLTOP, L.L.C. |
||||
K. HOVNANIAN AT HOPEWELL IV, INC. |
||||
K. HOVNANIAN AT HOPEWELL VI, INC. |
||||
K. HOVNANIAN AT HOWELL TOWNSHIP, INC. |
||||
K. HOVNANIAN AT HUDSON POINTE, L.L.C. |
||||
K. HOVNANIAN AT JACKSON I, L.L.C. |
||||
K. HOVNANIAN AT JACKSON, L.L.C. |
||||
K. HOVNANIAN AT JERSEY CITY IV, L.L.C. |
||||
K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C. |
||||
K. HOVNANIAN AT KEYPORT, L.L.C. |
||||
K. HOVNANIAN AT KING FARM, L.L.C. |
||||
K. HOVNANIAN AT KINGS GRANT I, INC. |
||||
K. HOVNANIAN AT LA COSTA GREENS, L.L.C. |
||||
K. HOVNANIAN AT LA COSTA, LLC |
||||
K. HOVNANIAN AT LA HABRA KNOLLS, LLC |
||||
K. HOVNANIAN AT LA TERRAZA, INC. |
||||
K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C. |
||||
K. HOVNANIAN AT LAKE HILLS, L.L.C. |
||||
K. HOVNANIAN AT LAKE RANCHO VIEJO, LLC |
||||
K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C. |
||||
K. HOVNANIAN AT LAKE TERRAPIN, L.L.C. |
II-18
K. HOVNANIAN AT LAKEWOOD, INC. |
||||
K. HOVNANIAN AT LAWRENCE V, L.L.C. |
||||
K. HOVNANIAN AT LINWOOD, L.L.C. |
||||
K. HOVNANIAN AT LITTLE EGG HARBOR CONTRACTORS, L.L.C. |
||||
K. HOVNANIAN AT LITTLE EGG HARBOR III, L.L.C. |
||||
K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C. |
||||
K. HOVNANIAN AT LONG BRANCH I, L.L.C. |
||||
K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C. |
||||
K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C. |
||||
K. HOVNANIAN AT LOWER MORELAND I, L.L.C. |
||||
K. HOVNANIAN AT LOWER MORELAND II, L.L.C. |
||||
K. HOVNANIAN AT LOWER MORELAND III, L.L.C. |
||||
K. HOVNANIAN AT LOWER SAUCON, INC. |
||||
K. HOVNANIAN AT MACUNGIE, L.L.C. |
||||
K. HOVNANIAN AT MAHWAH II, INC. |
||||
K. HOVNANIAN AT MAHWAH VI, INC. |
||||
K. HOVNANIAN AT MAHWAH VII, INC. |
||||
K. HOVNANIAN AT MANALAPAN III, L.L.C. |
||||
K. HOVNANIAN AT MANALAPAN, INC. |
||||
K. HOVNANIAN AT MANSFIELD I, L.L.C. |
||||
K. HOVNANIAN AT MANSFIELD II, L.L.C. |
||||
K. HOVNANIAN AT MANSFIELD III, L.L.C. |
||||
K. HOVNANIAN AT MAPLE AVENUE, L.L.C. |
||||
K. HOVNANIAN AT MARLBORO II, INC. |
||||
K. HOVNANIAN AT MARLBORO TOWNSHIP III, INC. |
||||
K. HOVNANIAN AT MARLBORO TOWNSHIP IV, INC. |
||||
K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C. |
||||
K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C. |
||||
K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C. |
||||
K. HOVNANIAN AT MARLBORO VI, L.L.C. |
||||
K. HOVNANIAN AT MARLBORO VII, L.L.C. |
||||
K. HOVNANIAN AT MATSU, L.L.C. |
II-19
K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT MENIFEE VALLEY CONDOMINIUMS, L.L.C. |
||||
K. HOVNANIAN AT MENIFEE, L.L.C. |
||||
K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT MIDDLETOWN II, L.L.C. |
||||
K. HOVNANIAN AT MIDDLETOWN, L.L.C. |
||||
K. HOVNANIAN AT MILLVILLE I, L.L.C. |
||||
K. HOVNANIAN AT MILLVILLE II, L.L.C. |
||||
K. HOVNANIAN AT MILLVILLE III, L.L.C. |
||||
K. HOVNANIAN AT MOCKINGBIRD CANYON, L.L.C. |
||||
K. HOVNANIAN AT MONROE II, INC. |
||||
K. HOVNANIAN AT MONROE III, L.L.C. |
||||
K. HOVNANIAN AT MONROE IV, L.L.C. |
||||
K. HOVNANIAN AT MONROE NJ, L.L.C. |
||||
K. HOVNANIAN AT MONTGOMERY I, INC. |
||||
K. HOVNANIAN AT MONTVALE, L.L.C. |
||||
K. HOVNANIAN AT MOSAIC, LLC |
||||
K. HOVNANIAN AT MT. OLIVE TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C. |
||||
K. HOVNANIAN AT NEW WINDSOR, L.L.C. |
||||
K. HOVNANIAN AT NORTH BERGEN, L.L.C. |
||||
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C. |
||||
K. HOVNANIAN AT NORTH CALDWELL II, L.L.C. |
||||
K. HOVNANIAN AT NORTH CALDWELL III, L.L.C. |
||||
K. HOVNANIAN AT NORTH CALDWELL, L.L.C. |
||||
K. HOVNANIAN AT NORTH HALEDON, L.L.C. |
||||
K. HOVNANIAN AT NORTH WILDWOOD, L.L.C. |
||||
K. HOVNANIAN AT NORTHAMPTON, L.L.C. |
||||
K. HOVNANIAN AT NORTHERN WESTCHESTER, INC. |
||||
K. HOVNANIAN AT NORTHFIELD, L.L.C. |
||||
K. HOVNANIAN AT NORTHLAKE, INC. |
||||
K. HOVNANIAN AT OCEAN TOWNSHIP, INC. |
||||
K. HOVNANIAN AT OCEAN WALK, INC. |
II-20
K. HOVNANIAN AT OCEANPORT, L.L.C. |
||||
K. HOVNANIAN AT OLD BRIDGE, L.L.C. |
||||
K. HOVNANIAN AT OLDE ORCHARD, LLC |
||||
K. HOVNANIAN AT ORANGE HEIGHTS, L.L.C. |
||||
K. HOVNANIAN AT PACIFIC BLUFFS, LLC |
||||
K. HOVNANIAN AT PARAMUS, L.L.C. |
||||
K. HOVNANIAN AT PARK LANE, LLC |
||||
K. HOVNANIAN AT PARSIPPANY-TROY HILLS, L.L.C. |
||||
K. HOVNANIAN AT PEAPACK-GLADSTONE, L.L.C. |
||||
K. HOVNANIAN AT PERKIOMEN I, INC. |
||||
K. HOVNANIAN AT PERKIOMEN II, INC. |
||||
K. HOVNANIAN AT PHILADELPHIA II, L.L.C. |
||||
K. HOVNANIAN AT PHILADELPHIA III, L.L.C. |
||||
K. HOVNANIAN AT PHILADELPHIA IV, L.L.C. |
||||
K. HOVNANIAN AT PIAZZA D'ORO, L.L.C. |
||||
K. HOVNANIAN AT PITTSGROVE, L.L.C. |
||||
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C. |
||||
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C. |
||||
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C. |
||||
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C. |
||||
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C. |
||||
K. HOVNANIAN AT PRADO, L.L.C. |
||||
K. HOVNANIAN AT PRINCETON LANDING, L.L.C. |
||||
K. HOVNANIAN AT PRINCETON NJ, L.L.C. |
||||
K. HOVNANIAN AT RANCHO CRISTIANITOS, INC. |
||||
K. HOVNANIAN AT RANCHO SANTA MARGARITA, LLC |
||||
K. HOVNANIAN AT RANDOLPH I, L.L.C. |
||||
K. HOVNANIAN AT RAPHO, L.L.C. |
||||
K. HOVNANIAN AT READINGTON II, L.L.C. |
||||
K. HOVNANIAN AT RED BANK, L.L.C. |
||||
K. HOVNANIAN AT RESERVOIR RIDGE, INC. |
||||
K. HOVNANIAN AT RIDGEMONT, L.L.C. |
||||
K. HOVNANIAN AT RIDGESTONE, L.L.C. |
||||
K. HOVNANIAN AT RIVERBEND, LLC |
II-21
K. HOVNANIAN AT RODERUCK, L.L.C. |
||||
K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C. |
||||
K. HOVNANIAN AT ROWLAND HEIGHTS, LLC |
||||
K. HOVNANIAN AT SAGE, L.L.C. |
||||
K. HOVNANIAN AT SAN SEVAINE, INC. |
||||
K. HOVNANIAN AT SARATOGA, INC. |
||||
K. HOVNANIAN AT SAWMILL, INC. |
||||
K. HOVNANIAN AT SAYREVILLE, L.L.C. |
||||
K. HOVNANIAN AT SCOTCH PLAINS II, INC. |
||||
K. HOVNANIAN AT SCOTCH PLAINS, L.L.C. |
||||
K. HOVNANIAN AT SILVER SPRING, L.L.C. |
||||
K. HOVNANIAN AT SKYE ISLE, LLC |
||||
K. HOVNANIAN AT SMITHVILLE III, L.L.C. |
||||
K. HOVNANIAN AT SMITHVILLE, INC. |
||||
K. HOVNANIAN AT SOMERS POINT, L.L.C. |
||||
K. HOVNANIAN AT SOUTH BRUNSWICK V, INC. |
||||
K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C. |
||||
K. HOVNANIAN AT SPARTA, L.L.C. |
||||
K. HOVNANIAN AT SPRINGCO, L.L.C. |
||||
K. HOVNANIAN AT SPRINGFIELD, L.L.C. |
||||
K. HOVNANIAN AT STONE CANYON, INC. |
||||
K. HOVNANIAN AT STONY POINT, INC. |
||||
K. HOVNANIAN AT SUNSETS, LLC |
||||
K. HOVNANIAN AT SYCAMORE, INC. |
||||
K. HOVNANIAN AT TANNERY HILL, INC. |
||||
K. HOVNANIAN AT TEANECK, L.L.C. |
||||
K. HOVNANIAN AT THE BLUFF, INC. |
||||
K. HOVNANIAN AT THE CROSBY, LLC |
||||
K. HOVNANIAN AT THE GABLES, LLC |
||||
K. HOVNANIAN AT THE MONARCH, L.L.C. |
||||
K. HOVNANIAN AT THE PRESERVE, L.L.C. |
||||
K. HOVNANIAN AT THOMPSON RANCH, LLC |
||||
K. HOVNANIAN AT THORNBURY, INC. |
||||
K. HOVNANIAN AT TIERRASANTA, INC. |
II-22
K. HOVNANIAN AT TRAIL RIDGE, LLC |
||||
K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C. |
||||
K. HOVNANIAN AT TRENTON, L.L.C. |
||||
K. HOVNANIAN AT TROVATA, INC. |
||||
K. HOVNANIAN AT TUXEDO, INC. |
||||
K. HOVNANIAN AT UNION TOWNSHIP I, INC. |
||||
K. HOVNANIAN AT UNION TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP I, INC. |
||||
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II, L.L.C. |
||||
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C. |
||||
K. HOVNANIAN AT UPPER MAKEFIELD I, INC. |
||||
K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C. |
||||
K. HOVNANIAN AT UPPER UWCHLAN, L.L.C. |
||||
K. HOVNANIAN AT VAIL RANCH, INC. |
||||
K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C. |
||||
K. HOVNANIAN AT VINELAND, L.L.C. |
||||
K. HOVNANIAN AT WALL TOWNSHIP VI, INC. |
||||
K. HOVNANIAN AT WALL TOWNSHIP VIII, INC. |
||||
K. HOVNANIAN AT WANAQUE, L.L.C. |
||||
K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C. |
||||
K. HOVNANIAN AT WASHINGTON, L.L.C. |
||||
K. HOVNANIAN AT WASHINGTONVILLE, INC. |
||||
K. HOVNANIAN AT WAYNE III, INC. |
||||
K. HOVNANIAN AT WAYNE IX, L.L.C. |
||||
K. HOVNANIAN AT WAYNE V, INC. |
||||
K. HOVNANIAN AT WAYNE VIII, L.L.C. |
||||
K. HOVNANIAN AT WEST BRADFORD, L.L.C. |
||||
K. HOVNANIAN AT WEST MILFORD, L.L.C. |
||||
K. HOVNANIAN AT WEST WINDSOR, L.L.C. |
||||
K. HOVNANIAN AT WILDROSE, INC. |
||||
K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C. |
||||
K. HOVNANIAN AT WILLOW BROOK, L.L.C. |
||||
K. HOVNANIAN AT WINCHESTER, LLC |
||||
K. HOVNANIAN AT WOODHILL ESTATES, L.L.C. |
II-23
K. HOVNANIAN AT WOOLWICH I, L.L.C. |
||||
K. HOVNANIAN CAMBRIDGE HOMES, L.L.C. |
||||
K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C. |
||||
K. HOVNANIAN CLASSICS CIP, L.L.C. |
||||
K. HOVNANIAN CLASSICS, L.L.C. |
||||
K. HOVNANIAN COMMUNITIES, INC. |
||||
K. HOVNANIAN COMPANIES METRO D.C. NORTH, L.L.C. |
||||
K. HOVNANIAN COMPANIES NORTHEAST, INC. |
||||
K. HOVNANIAN COMPANIES OF CALIFORNIA, INC. |
||||
K. HOVNANIAN COMPANIES OF MARYLAND, INC. |
||||
K. HOVNANIAN COMPANIES OF NEW YORK, INC. |
||||
K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC. |
||||
K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC. |
||||
K. HOVNANIAN COMPANIES OF VIRGINIA, INC. |
||||
K. HOVNANIAN COMPANIES, LLC |
||||
K. HOVNANIAN CONNECTICUT ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN CONSTRUCTION II, INC |
||||
K. HOVNANIAN CONSTRUCTION III, INC |
||||
K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC. |
||||
K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C. |
||||
K. HOVNANIAN DELAWARE ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF CONNECTICUT, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF D.C., INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF INDIANA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF MICHIGAN, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC. |
II-24
K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF OHIO, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC. |
||||
K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC. |
||||
K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C. |
||||
K. HOVNANIAN FIRST HOMES, L.L.C. |
||||
K. HOVNANIAN FLORIDA REALTY, L.L.C. |
||||
K. HOVNANIAN FORECAST HOMES NORTHERN, INC. |
||||
K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, LLC |
||||
K. HOVNANIAN FOUR SEASONS AT GOLD HILL, LLC |
||||
K. HOVNANIAN FRANCISCUS HOMES, L.L.C. |
||||
K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC |
||||
K. HOVNANIAN GREAT WESTERN HOMES, LLC |
||||
K. HOVNANIAN HOLDINGS NJ, L.L.C. |
||||
K. HOVNANIAN HOMES—DFW, L.L.C. |
||||
K. HOVNANIAN HOMES AT BELMONT OVERLOOK, L.L.C. |
||||
K. HOVNANIAN HOMES AT CAMERON STATION, LLC |
||||
K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C. |
||||
K. HOVNANIAN HOMES AT CIDER MILL, L.L.C. |
||||
K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C. |
||||
K. HOVNANIAN HOMES AT FOREST RUN, L.L.C. |
||||
K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C. |
||||
K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C. |
||||
K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C. |
||||
K. HOVNANIAN HOMES AT JONES STATION 2, L.L.C. |
||||
K. HOVNANIAN HOMES AT MAXWELL PLACE. L.L.C. |
||||
K. HOVNANIAN HOMES AT NASSAU GROVE, L.L.C. |
||||
K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C. |
II-25
K. HOVNANIAN HOMES AT PRIMERA, L.L.C. |
||||
K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C. |
||||
K. HOVNANIAN HOMES AT RUSSETT, L.L.C. |
||||
K. HOVNANIAN HOMES AT VICTORIA STATION, L.L.C. |
||||
K. HOVNANIAN HOMES OF D.C., L.L.C. |
||||
K. HOVNANIAN HOMES OF DELAWARE, L.L.C. |
||||
K. HOVNANIAN HOMES OF GEORGIA, L.L.C. |
||||
K. HOVNANIAN HOMES OF HOUSTON, L.L.C. |
||||
K. HOVNANIAN HOMES OF INDIANA, L.L.C. |
||||
K. HOVNANIAN HOMES OF MARYLAND, L.L.C. |
||||
K. HOVNANIAN HOMES OF MINNESOTA, L.L.C. |
||||
K. HOVNANIAN HOMES OF NORTH CAROLINA, INC. |
||||
K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C. |
||||
K. HOVNANIAN HOMES OF SOUTH CAROLINA, LLC |
||||
K. HOVNANIAN HOMES OF VIRGINIA, INC. |
||||
K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C. |
||||
K. HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C. |
||||
K. HOVNANIAN INTERNATIONAL, L.L.C. |
||||
K. HOVNANIAN INVESTMENTS II, L.L.C. |
||||
K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN NORTHEAST SERVICES, L.L.C. |
||||
K. HOVNANIAN OF HOUSTON II, L.L.C. |
||||
K. HOVNANIAN OHIO REALTY, L.L.C. |
||||
K. HOVNANIAN OSTER HOMES, L.L.C. |
||||
K. HOVNANIAN PA REAL ESTATE, INC. |
||||
K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C. |
||||
"K. HOVNANIAN POLAND, SP .Z.O.O. |
||||
K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC. |
||||
K. HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC. |
||||
K. HOVNANIAN PROPERTIES OF RED BANK, INC. |
||||
K. HOVNANIAN SHORE ACQUISITIONS, L.L.C. |
||||
K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C. |
II-26
K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C. |
||||
K. HOVNANIAN STANDING ENTITY, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOLDINGS, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOMES OF MICHIGAN, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C. |
||||
K. HOVNANIAN SUMMIT HOMES, L.L.C. |
||||
K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C. |
||||
K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C. |
||||
K. HOVNANIAN T&C HOMES AT MINNESOTA, L.L.C. |
||||
K. HOVNANIAN T&C INVESTMENT, L.L.C. |
||||
K. HOVNANIAN T&C MANAGEMENT CO., L.L.C. |
||||
K. HOVNANIAN VENTURE I, L.L.C. |
||||
K. HOVNANIAN WINDWARD HOMES, LLC |
||||
K. HOVNANIAN'S FOUR SEASONS AT ASHBURN VILLAGE, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT BAILEY'S GLENN, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT BAKERSFIELD, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT BEAUMONT, LLC |
||||
K. HOVNANIAN'S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT DULLES DISCOVERY CONDOMINIUM, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT DULLES DISCOVERY, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT HAMPTONBURGH, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT HEMET, LLC |
||||
K. HOVNANIAN'S FOUR SEASONS AT HUNTFIELD, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT KENT ISLAND, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT MENIFEE VALLEY, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT NEW KENT VINEYARDS, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT OLDE LIBERTY, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT PALM SPRINGS, LLC |
||||
K. HOVNANIAN'S FOUR SEASONS AT RENAISSANCE, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT RUSH CREEK, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C. |
II-27
K. HOVNANIAN'S FOUR SEASONS AT VINT HILL, L.L.C. |
||||
K. HOVNANIAN'S FOUR SEASONS, LLC |
||||
K. HOVNANIAN'S PARKSIDE AT TOWNGATE, L.L.C. |
||||
K. HOVNANIAN'S PRIVATE HOME PORTFOLIO, L.L.C. |
||||
KHC ACQUISITION, INC. |
||||
KHIP, L.L.C. |
||||
LANDARAMA, INC. |
||||
M & M AT KENSINGTON WOODS, L.L.C. |
||||
M & M AT LONG BRANCH, INC |
||||
M&M AT APPLE RIDGE, L.L.C. |
||||
M&M AT CHESTERFIELD, L.L.C. |
||||
M&M AT COPPER BEECH, L.L.C. |
||||
M&M AT CRESCENT COURT, L.L.C. |
||||
M&M AT EAST MILL, L.L.C. |
||||
M&M AT EAST RUTHERFORD, L.L.C. |
||||
M&M AT MORRISTOWN, L.L.C. |
||||
M&M AT SHERIDAN, L.L.C. |
||||
M&M AT SPINNAKER POINTE, L.L.C. |
||||
M&M AT SPRUCE HOLLOW, L.L.C. |
||||
M&M AT SPRUCE RUN, L.L.C. |
||||
M&M AT STATION SQUARE, L.L.C. |
||||
M&M AT TAMARACK HOLLOW, L.L.C. |
||||
M&M AT THE CHATEAU, L.L.C. |
||||
M&M AT THE HIGHLANDS, L.L.C. |
||||
M&M AT UNION, L.L.C. |
||||
M&M AT WEST ORANGE, L.L.C. |
||||
M&M AT WESTPORT, L.L.C. |
||||
M&M AT WHEATENA URBAN RENEWAL, L.L.C. |
||||
M&M INVESTMENTS, L.P. |
||||
MATZEL & MUMFORD AT EGG HARBOR, L.L.C. |
||||
MATZEL & MUMFORD AT MONTGOMERY, L.L.C. |
||||
MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C. |
||||
MCNJ, INC. |
II-28
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF KENTUCKY, L.L.C. |
||||
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF MICHIGAN, L.L.C. |
||||
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C. |
||||
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C. |
||||
MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C. |
||||
MILLENNIUM TITLE AGENCY, LTD |
||||
MMIP, L.L.C. |
||||
NATOMAS CENTRAL NEIGHBORHOOD HOUSING, L.L.C. |
||||
NEW LAND TITLE AGENCY, L.L.C. |
||||
PADDOCKS, L.L.C. |
||||
PARK TITLE COMPANY, LLC |
||||
PI INVESTMENTS II, L.L.C. |
||||
PINE AYR, LLC |
||||
RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C. |
||||
RIDGEMORE UTILITY L.L.C. |
||||
SEABROOK ACCUMULATION CORPORATION |
||||
STONEBROOK HOMES, INC. |
||||
TERRAPIN REALTY, L.L.C. |
||||
THE LANDINGS AT SPINNAKER POINTE, L.L.C. |
||||
THE MATZEL & MUMFORD ORGANIZATION, INC |
||||
WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C. |
||||
WASHINGTON HOMES, INC. |
||||
WESTMINSTER HOMES OF ALABAMA, L.L.C. |
||||
WESTMINSTER HOMES OF MISSISSIPPI, LLC |
||||
WESTMINSTER HOMES OF TENNESSEE, INC. |
||||
WESTMINSTER HOMES, INC. |
||||
WH LAND I, INC |
||||
WH PROPERTIES, INC. |
||||
WH/PR LAND COMPANY, L.L.C. |
||||
WOODLAND LAKE CONDOMINIUMS AT BOWIE NEW TOWN, L.L.C. |
II-29
| 3.1 | Articles of Incorporation of K. Hovnanian Enterprises, Inc.(1) | ||
3.2 |
By-Laws of K. Hovnanian Enterprises, Inc. (filed herewith) |
||
3.3 |
Certificate of Incorporation of Hovnanian Enterprises, Inc.(13) |
||
3.4 |
Restated By-Laws of Hovnanian Enterprises, Inc.(7) |
||
3.5 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in New Jersey.(1) |
||
3.6 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in New York.(1) |
||
3.7 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Pennsylvania.(1) |
||
3.8 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in North Carolina.(1) |
||
3.9 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in South Carolina.(1) |
||
3.10 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Virginia.(1) |
||
3.11 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Maryland.(1) |
||
3.12 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Delaware.(1) |
||
3.13 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in California.(1) |
||
3.14 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Texas.(1) |
||
3.15 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Arizona.(1) |
||
3.16 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Ohio.(1) |
||
3.17 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in West Virginia.(1) |
||
3.18 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Florida.(1) |
||
3.19 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Michigan.(1) |
||
3.20 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Tennessee.(1) |
||
3.21 |
Form of Articles of Organization for Subsidiary Registrant limited liability companies.(1) |
||
3.22 |
Form of Certificate of Limited Partnership for Subsidiary Registrant limited partnerships.(1) |
II-30
| 3.23 | Form of By-Laws for Subsidiary Registrant corporations incorporated in New Jersey.(1) | ||
3.24 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in New York.(1) |
||
3.25 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Pennsylvania.(1) |
||
3.26 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in North Carolina.(1) |
||
3.27 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in South Carolina.(1) |
||
3.28 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Maryland.(1) |
||
3.29 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Virginia.(1) |
||
3.30 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Delaware.(1) |
||
3.31 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in California.(1) |
||
3.32 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Texas.(1) |
||
3.33 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Arizona.(1) |
||
3.34 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Ohio.(1) |
||
3.35 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in West Virginia.(1) |
||
3.36 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Florida.(1) |
||
3.37 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Michigan.(1) |
||
3.38 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Tennessee.(1) |
||
3.39 |
Form of Limited Liability Company Agreement for Subsidiary Registrant limited liability companies.(1) |
||
3.40 |
Form of Limited Partnership Agreement for Subsidiary Registrant limited partnerships.(1) |
||
3.41 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Minnesota.(4) |
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3.42 |
Form of Certificate of Incorporation for Subsidiary Registrant corporations incorporated in Connecticut. (filed herewith) |
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3.43 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Georgia. (filed herewith) |
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3.44 |
Form of Certificate of Incorporation for Subsidiary Registrant corporations incorporated in Illinois. (filed herewith) |
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3.45 |
Form of Certificate of Incorporation for Subsidiary Registrant corporations incorporated in Indiana. (filed herewith) |
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3.46 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Kentucky. (filed herewith) |
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3.47 |
Form of Articles of Incorporation for Subsidiary Registrant corporations incorporated in Washington, DC. (filed herewith) |
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3.48 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Connecticut. (filed herewith) |
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3.49 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Georgia. (filed herewith) |
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| 3.50 | Form of By-Laws for Subsidiary Registrant corporations incorporated in Illinois. (filed herewith) | ||
3.51 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Indiana. (filed herewith) |
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3.52 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Kentucky. (filed herewith) |
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3.53 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Washington, DC. (filed herewith) |
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3.54 |
Form of By-Laws for Subsidiary Registrant corporations incorporated in Minnesota. (filed herewith) |
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4.1 |
Indenture dated as of May 27, 2008, relating to 111/2% Senior Secured Notes due 2013, among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc. and the other Guarantors named therein and Deutsche Bank National Trust Company, as Trustee, including form of 111/2% Senior Secured Notes due 2013.(9) |
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4.2 |
Registration Rights Agreement, dated as of May 27, 2008, by and among K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc., certain of its subsidiaries and Credit Suisse Securities (USA) LLC, Banc of America Securities LLC, J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC on behalf of themselves and the several other initial purchasers. (filed herewith) |
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4.3 |
Certificate of Designations, Powers, Preferences and Rights of the 7.625% Series A Preferred Stock of Hovnanian Enterprises, Inc., dated July 12, 2005.(6) |
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4.4 |
Certificate of Designations of the Series B Junior Preferred Stock of Hovnanian Enterprises, Inc., dated August 14, 2008.(13) |
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4.5 |
Rights Agreement, dated as of August 14, 2008, between Hovnanian Enterprises, Inc. and National City Bank, as Rights Agent, which includes the Form of Certificate of Designation as Exhibit A, Form of Right Certificate as Exhibit B and the Summary of Rights as Exhibit C.(3) |
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5.1 |
Opinion of Simpson Thacher & Bartlett LLP. (filed herewith) |
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10.1 |
Seventh Amended and Restated Credit Agreement dated March 7, 2008.(8) |
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10.2 |
Amendment No. 1 to Seventh Amended and Restated Credit Agreement dated as of May 16, 2008.(9) |
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10.3 |
Guaranty and Suretyship Agreement, dated March 7, 2008.(8) |
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10.4 |
Pledge Agreement, relating to the Amended Credit Agreement, dated as of March 7, 2008.(8) |
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10.5 |
Amended and Restated Security Agreement, relating to the Amended Credit Agreement, dated as of May 27, 2008.(9) |
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10.6 |
Intellectual Property Security Agreement, relating to the Amended Credit Agreement, dated as of May 27, 2008.(9) |
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10.7 |
Intercreditor Agreement dated as of May 27, 2008.(9) |
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10.8 |
Second Lien Pledge Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) |
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| 10.9 | Second Lien Security Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) | ||
10.10 |
Intellectual Property Security Agreement, relating to the 111/2% Senior Secured Notes due 2013, dated as of May 27, 2008.(9) |
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10.11 |
Amended and Restated Hovnanian Enterprises, Inc. Senior Executive Short-Term Incentive Plan.(10) |
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10.12 |
2008 Hovnanian Enterprises, Inc. Stock Incentive Plan.(11) |
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10.13 |
Amended and Restated Hovnanian Enterprises, Inc. 1983 Stock Option Plan.(12) |
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10.14 |
Description of Non-Employee Director Compensation.(13) |
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10.15 |
Base Salaries of Executive Officers.(7) |
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10.16 |
Description of Management Bonus Arrangements.(5) |
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10.17 |
Description of Savings and Investment Retirement Plan.(2) |
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10.18 |
Management Agreement dated August 12, 1983, for the management of properties by K. Hovnanian Investment Properties, Inc.(2) |
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10.19 |
Management Agreement dated December 15, 1985, for the management of properties by K. Hovnanian Investment Properties, Inc.(5) |
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10.20 |
Description of Deferred Compensation Plan.(5) |
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10.21 |
Death and Disability Agreement between Hovnanian Enterprises, Inc. and Ara K. Hovnanian.(14) |
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10.22 |
Form of Hovnanian Deferred Share Policy for Senior Executives.(14) |
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10.23 |
Form of Hovnanian Deferred Share Policy.(14) |
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10.24 |
Form of Non-Qualified Stock Option Agreement.(14) |
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10.25 |
Form of Incentive Stock Option Agreement.(14) |
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10.26 |
Form of Stock Option Agreement for Directors.(14) |
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10.27 |
Form of Restricted Share Unit Agreement.(14) |
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12.1 |
Statement re: Computation of Ratio of Earnings to Fixed Charges. (filed herewith) |
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21.1 |
Subsidiaries of Hovnanian Enterprises, Inc. (filed herewith) |
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23.1 |
Consent of Simpson Thacher & Bartlett LLP. (contained in Exhibit 5.1) |
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23.2 |
Consent of Ernst & Young LLP. (filed herewith) |
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24.1 |
Powers of Attorney of the Boards of Directors of K. Hovnanian Enterprises, Inc., Hovnanian Enterprises, Inc. and Subsidiary Registrants. (included on signature pages) |
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25.1 |
Statement of Eligibility of Trustee under the Indenture filed as Exhibit 4.1 hereto. (filed herewith) |
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99.1 |
Form of Letter of Transmittal. (filed herewith) |
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99.2 |
Form of Letter to Dealers, Commercial Banks, Trust Companies and Other Nominees. (filed herewith) |
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99.3 |
Form of Letter to Clients. (filed herewith) |
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| 99.4 | Form of Notice of Guaranteed Delivery. (filed herewith) |
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