By Paul A. Harris
Portland, Ore., Aug. 9 – Kennedy-Wilson, Inc., a wholly owned subsidiary of Kennedy-Wilson Holdings, Inc., priced an upsized $250 million add-on to its 5 7/8% senior notes due April 1, 2024 (B2/BB-) at par on Tuesday, according to a syndicate source.
The issue was upsized from $200 million.
The reoffer price came cheap to price talk in the 100.25 area.
Initial guidance was par to 100.25, according to a portfolio manager said.
BofA Merrill Lynch was the left bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
The Beverly Hills, Calif.-based real estate investment company plans to use the proceeds to repay $60 million of the outstanding balance under its revolver and the remainder for general corporate purposes, which may include future acquisitions, co-investments, capital expenditures and debt repayment.
| Issuer: | Kennedy-Wilson, Inc.
|
| Amount: | $250 million, increased from $200 million
|
| Maturity: | April 1, 2024
|
| Security description: | Add-on to 5 7/8% senior notes due April 1, 2024
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc.
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Call: | Make-whole call until April 1, 2019, then callable at 102.938
|
| Equity clawback: | 35% at 105.875 until April 1, 2017
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 12 with accrued interest
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 100.25 area
|
| Marketing: | Quick to market
|
| Original issue: | $300 million priced at 99.068 to yield 6% in March 2014
|
| Previous add-on: | $350 million priced at par to yield 5.874% in November 2014.
|
| Total issue size: | $900 million
|
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