Company: HOVVB
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0001753926-25-000367
Chunk: 18

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-28
Form: 10-Q
Item: Part I, Item 3
Chunk 18
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Substantially all of our long-term debt requires fixed interest payments and we have limited exposure to variable rates. In connection with our mortgage operations, mortgage loans held for sale and the associated mortgage warehouse lines of credit under our Master Repurchase Agreements are subject to interest rate risk; however, such obligations reprice frequently and are short-term in duration. In addition, we are able to hedge the interest rate risk on mortgage loans by obtaining forward commitments from private investors. Accordingly, the interest rate risk from mortgage loans is not significant. We do not use financial instruments to hedge interest rate risk except with respect to mortgage loans. The following table sets forth as of January 31, 2025, our long-term debt obligations, principal cash flows by scheduled maturity, weighted-average interest rates and estimated fair value (“FV”).

Long-Term Debt as of January 31, 2025 by Fiscal Year of Maturity Date 

FV at 

(Dollars in thousands) 

2025 

2026 

2027 

2028 

2029

Thereafter 

Total 

1/31/2025 

Long term debt(1): 

Fixed rate 
 
$
-

$
26,588

$
-

$
400,000

$

430,000 

$
24,968

$
881,556

$
926,998

Weighted average interest rate 

-
%

13.50
%

-
%

8.88
%

11.75
%

5.00
%

10.31
%

(1)
Does not include: 

●
the mortgage warehouse lines of credit made under our Master Repurchase Agreements;  

●
$87.6 million of nonrecourse mortgages secured by inventory, which have various maturities spread over the next two to three years and are paid off as homes are delivered; and  

●
our $125.0 million Secured Credit Facility under which there were no borrowings outstanding as of January 31, 2025.