From an 8-K released after hours:
"Pursuant to agreements with bondholders dated June 28, 2012 and July 2, 2012, Hovnanian Enterprises, Inc. (the 'Company') issued an aggregate of 1,516,712 shares of the Company’s Class A common stock, par value $0.01 per share, in exchange for an aggregate of $6.0 million of the Company’s outstanding indebtedness, consisting of $3.0 million aggregate principal amount of the Company’s outstanding 7.5% Senior Unsecured Notes due 2016 and $3.0 million aggregate principal amount of the Company’s outstanding 8.625% Senior Notes due 2017 (the 'exchanges')."Thanks, HOV! This is good for the HOV debt/equity trade. They previously mentioned that one of their "Potential Liquidity Management Levers" was going to be "issue equity for cash or debt".
This was $6 million face amount of debt, but both bonds were trading ~70, so the market value of the debt they received was more like $4.16 million. Trading 1,516,712 shares is equivalent to selling shares for $2.74 - a discount to the current market price of $2.74.
It's nice to know that the company agrees that the bonds are a better value than the stock.