Hovnanian Enterprises Inc. (NYSE:HOV) late Wednesday disclosed in an 8-K filing with the Securities and Exchange Commission that it has tapped its revolving credit facility for cash.
In the filing, the company stated, “As of January 31, 2020, we had $125.0 million of availability under the Revolving Credit Facility. Given the uncertain environment resulting from the COVID-19 pandemic and as a precautionary measure to maximize financial flexibility and increase its current cash position, the company elected to draw in full the $125.0 million available under the Revolving Credit Facility. The drawn down proceeds may be used for general corporate purposes in accordance with the terms of the Revolving Credit Agreement. Availability under the Revolving Credit Agreement will terminate on December 28, 2022 and the borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to 7.75%.”
Prior to the announcement of the filing, shares of HOV closed at $11.24, up 17.45% on the Wednesday trading session.
