By Rebecca Melvin
New York, Oct. 18 – Kennedy-Wilson Holdings Inc. has placed $300 million of 5.75% convertible perpetual preferred stock in a private placement with affiliate Eldridge Industries, according to a company news release on Friday.
The transaction is subject to customary closing conditions.
The convertible preferreds have an initial conversion price of $25.00 per share, which represents a premium of 15% to the daily volume weighted average price per share of Kennedy-Wilson common stock over a 20-day period.
The preferred shares are non-callable until Oct. 15, 2024.
J.P. Morgan Securities LLC acted as exclusive placement agent.
Kennedy-Wilson will use the proceeds to pay down debt, including repaying its unsecured bank borrowings in full and to fund its development pipeline.
Beverly Hills, Calif.-based Kennedy Wilson is a real estate investment company.
| Issuer: | Kennedy-Wilson Holdings Inc.
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| Issue: | Convertible preferred shares
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| Amount: | $300 million
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| Maturity: | Perpetual
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| Placement agent: | J.P. Morgan Securities LLC
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| Dividend: | 5.75%
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| Conversion premium: | 15%
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| Initial conversion price: | $25.00
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| Calls: | Non-callable until Oct. 15, 2024
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| Announcement date: | Oct. 18
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| Stock ticker: | NYSE: KW
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| Stock price: | $22.39, as of close on Oct. 17
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