Hovnanian Enterprises entered into financing commitments with GSO Capital Partners, Blackstone’s credit platform, to refinance debt securities maturing in 2019 and to purchase $25 million of the company’s secured debt securities.

In connection with this agreement, the company will pay down certain debt securities coming due in the next one to two years, which will be replaced with longer-term financing, most of which will not be due until 2026 and beyond.

The GSO parties also committed to provide the company with a new $125 million senior secured first lien revolving credit facility. The company intends to use $75 million of this facility to refinance its current $75 million first priority secured term loan subsequent to the expiration of such term loan’s no-call period in September of 2018. The remaining portion of the credit facility will be available for general corporate purposes and provide the company with additional financial flexibility.

“We continue to take steps to de-risk our balance sheet and enhance our financial flexibility in support of our long-term operations. We are pleased to enter into these financing and refinancing transactions with affiliates of GSO, the credit platform of Blackstone, one of the preeminent investment firms in the world,” said Ara Hovnanian, president, CEO and chairman of Hovnanian.

Red Bank, NJ-based Hovnanian Enterprises is one of the nation’s largest homebuilders.