Kennedy Wilson Europe tenders for 3.95% bonds due 2022

By Rebecca Melvin

New York, Oct. 7 – Kennedy Wilson Europe Real Estate Ltd. began a tender offer to purchase for cash up to £325 million of its £500 million 3.95% bonds due 2022, according to a company news release.

The purchase price for the bonds is 101% of par.

The purpose of the offer is to optimize its balance sheet and future interest expense.

The purchased bonds will be canceled and not re-issued or re-sold.

The company disclosed that it has four new secured financings regarding certain properties in the U.K. and Ireland for up to £285 million, each with a three-year term and two one-year extension options at a rate of Euribor plus 300 basis points.

The tender is expected to be funded using a combination of cash on the balance sheet and loan proceeds from the secured financings.

In addition, the company is negotiating asset sales in the U.K. and Ireland for proceeds of about £229 million.

The tender expires at 11 a.m. ET on Oct. 14.

Final results of the tender will be announced on Oct. 15, and settlement is expected to occur on Oct. 22.

J.P. Morgan Securities plc (+44 20 7134 2468; liability_management_EMEA@jpmoran.com) and Morgan Stanley & Co. International plc (+44 20 7677 5040; liabilitymanagmenteurope@morganstanley.com) are dealer managers of the offer. Lucid Issuer Services Ltd. (kennedywilson@lucid-is.com or +44 20 7704 0880) is the tender agent.

The company is a subsidiary of Kennedy Wilson Holdings Inc., a global real estate investment company based in Beverly Hills, Calif.

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