Hovnanian Enterprises on Monday announced an offer to buy back some $88.9 million in outstanding debt.

The offering covers any and all of its outstanding $28,870,000 6% Senior Subordinated Notes due 2010. It also plans to buy back $40 million from a market basket of notes due between 2012 and 2013 and another $20 million from another group of notes due between 2014 and 2017. The offers will expire on July 20.

The company will pay holders of the 2010 vintage $985, payable in cash, for each $1,000 principal amount if they are tendered before July 2. Beyond that date until the closing of the offer, holders would get $955 per $1,000.

The balance of the buyback will be done though a "modified Dutch auction"with base bid prices ranging from $480 per $1,000 for the longest term notes to $750 per $1,000 on shorter maturities plus a premium based on where the bids actually come in.

The buyback is being managed by Citi, Banc of America Securities LLC and Wachovia Securities.