Hovnanian prices $600M private notes offering

Homebuilder Hovnanian Enterprises Inc. on Friday priced its $600 million private offering of senior notes.

The offering, for 11.5 percent senior notes due May 1, 2013, is expected to close on May 27.

Hovnanian also amended its revolving credit agreement, decreasing total commitments to $300 million, increasing the amount of collateral and "substantially" eliminating maintenance covenants.

Net proceeds from the offering will be used to repay debt under existing revolving credit agreement and for general corporate purposes.