Kennedy-Wilson driving by with $500 million 8.5-year notes; initial guidance high 4% area

By Paul A. Harris

Portland, Ore., Aug. 9 – Kennedy-Wilson, Inc. plans to price a $500 million public offering of senior notes due Feb. 1, 2030 (existing ratings B1/BB) in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the high 4% area, a bond trader said.

Left bookrunner BofA Securities Inc. will bill and deliver. J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc. and Goldman Sachs & Co. LLC are joint bookrunners.

PNC Capital Markets LLC and Evercore Group LLC are the co-managers.

The 8.5-year notes become callable after three years at par plus 50% of the coupon.

The Beverly Hills, Calif.-based real estate investment company plans to use the proceeds plus cash on hand to pay off the Kennedy Wilson Europe Real Estate Ltd. 3.95% senior bonds due 2022 and to pay down revolver debt.

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