Chicago, June 5 – Kennedy-Wilson Holdings, Inc. entered into a $200 million securities purchase agreement with Fairfax Financial Holdings Ltd. for 6% series C cumulative perpetual preferred stock and warrants to purchase the company’s common stock, according to an 8-K filing with the Securities and Exchange Commission.
The series C preferred stock will rank on a parity with the company’s 5.75% series A cumulative perpetual convertible preferred stock and 4.75% series B cumulative perpetual preferred stock, and senior, with respect to dividend and distribution.
The agreement includes 12,338,062 warrants to purchase the company’s common stock at an exercise price of $16.21 per share.
Proceeds will be used to repay a portion of the issuer’s corporate line of credit and for general corporate purposes.
The agreement includes a clause that within 60 days’ notice, the company will use reasonable efforts to file a registration statement with the SEC to register the preferred stock and warrants for resale.
Kennedy-Wilson Holdings is a global real estate investment company based in Beverly Hills, Calif.
| Issuer: | Kennedy-Wilson Holdings, Inc.
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| Amount: | $200 million, or 200,000 shares
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| Issue: | Series C cumulative perpetual preferred stock
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| Warrants: | 12,338,062 warrants
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| Maturity: | Perpetual
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| Dividend: | 6%
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| Price: | Par
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| Yield: | 6%
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| Announcement date: | June 5
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| Distribution: | Section 4(a)(2)
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| Marketing: | Private placement
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