Filed pursuant to Rule 433

Registration Nos. 333-134721

333-134721-01

Dated June 5, 2006

 

Issuer:

 

K. Hovnanian Enterprises, Inc.

 

 

 

Security Description:

 

Senior Notes

 

 

 

Distribution:

 

SEC Registered

 

 

 

Face:

 

$250,000,000

 

 

 

Gross Proceeds:

 

$250,000,000

 

 

 

Net Proceeds to Issuer:

 

$247,687,500

 

 

 

Coupon:

 

8.625%

 

 

 

Maturity:

 

January 15, 2017

 

 

 

Offering Price:

 

100.000%

 

 

 

Yield to Maturity:

 

8.625%

 

 

 

Spread to Treasury:

 

+361bps

 

 

 

Benchmark:

 

UST 5.125% due 5/15/2016

 

 

 

Ratings:

 

Ba1/BB (positive)

 

 

 

Interest Pay Dates:

 

January 15 and July 15

 

 

 

Beginning:

 

July 15, 2006

 

 

 

Optional Redemption:

 

Makewhole call at T+50bps

 

 

 

Change of control:

 

Put at 101% of principal plus accrued interest

 

 

 

Trade Date:

 

June 5, 2006

 

 

 

Settlement Date:

 

(T+5) June 12, 2006

 

 

 

CUSIP:

 

442488 BA 9

 

 

 

ISIN:

 

US442488BA93

 



 

Bookrunners:

 

JPMorgan

 

 

Banc of America Securities LLC

 

 

Citigroup

 

 

Credit Suisse

 

 

 

Co-Managers:

 

UBS Investment Bank

 

 

Wachovia Securities

 

 

PNC Capital Markets LLC

 

 

RBS Greenwich Capital

 

 

BNP Paribas

 

 

KeyBanc Capital Markets

 

 

SunTrust Robinson Humphrey

 

 

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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