Filed pursuant to Rule 433
Registration Nos. 333-134721
333-134721-01
Dated June 5, 2006
Issuer: |
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K. Hovnanian Enterprises, Inc. |
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Security Description: |
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Senior Notes |
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Distribution: |
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SEC Registered |
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Face: |
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$250,000,000 |
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Gross Proceeds: |
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$250,000,000 |
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Net Proceeds to Issuer: |
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$247,687,500 |
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Coupon: |
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8.625% |
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Maturity: |
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January 15, 2017 |
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Offering Price: |
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100.000% |
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Yield to Maturity: |
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8.625% |
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Spread to Treasury: |
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+361bps |
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Benchmark: |
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UST 5.125% due 5/15/2016 |
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Ratings: |
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Ba1/BB (positive) |
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Interest Pay Dates: |
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January 15 and July 15 |
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Beginning: |
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July 15, 2006 |
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Optional Redemption: |
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Makewhole call at T+50bps |
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Change of control: |
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Put at 101% of principal plus accrued interest |
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Trade Date: |
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June 5, 2006 |
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Settlement Date: |
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(T+5) June 12, 2006 |
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CUSIP: |
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442488 BA 9 |
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ISIN: |
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US442488BA93 |
Bookrunners: |
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JPMorgan |
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Banc of America Securities LLC |
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Citigroup |
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Credit Suisse |
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Co-Managers: |
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UBS Investment Bank |
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Wachovia Securities |
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PNC Capital Markets LLC |
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RBS Greenwich Capital |
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BNP Paribas |
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KeyBanc Capital Markets |
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SunTrust Robinson Humphrey |
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Comerica Securities |
Comment:
The underwriters have informed the Company that they intend to create a
syndicate short position in the Notes. The underwriters expect to settle
the short position in the market; however, if the underwriters determine it is
prudent to do so, and if they subsequently reach an agreement with the Company
to do so, may elect to cover the short position with the purchase of additional
Notes from the Company. The final prospectus will be revised to make
clear that the prospectus will apply to both the offering of Notes set forth
above and any Notes delivered as part of the short position (to the extent the
position is covered by a purchase of additional Notes by the Underwriters from
the Company).
The issuer has filed a registration statement (including a prospectus) with the
SEC for the offering to which this communication relates. Before you invest,
you should read the prospectus in that registration statement and other
documents the issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free by
visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the
issuer, any underwriter or any dealer participating in the offering will
arrange to send you the prospectus if you request it by calling collect
1-212-270-3994.
Any disclaimer or other notice that may appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by Bloomberg or another email system.
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