By Paul A. Harris
Portland, Ore., Aug. 9 – Kennedy-Wilson, Inc. priced an upsized $600 million issue of 8.5-year senior notes (B1/BB) at par to yield 4¾% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed in the middle of yield talk in the 4¾% area and tight to initial guidance in the high 4% area.
Left bookrunner BofA Securities Inc. will bill and deliver. Joint bookrunners were J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc. and Goldman Sachs & Co. LLC.
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.
| Issuer: | Kennedy-Wilson, Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Feb. 1, 2030
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc. (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments Inc., Fifth Third Securities Inc. and Goldman Sachs & Co. LLC
|
| Co-managers: | PNC Capital Markets LLC and Evercore
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| First call: | Sept. 1, 2024 at 102.375
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 23
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| Ratings: | Moody’s: B1
|
| S&P: BB
|
| Distribution: | SEC registered
|
| Price talk: | 4¾% area
|
| Marketing: | Drive-by
|
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