By Devika Patel
Knoxville, Tenn., May 30 - Kennedy-Wilson, Inc. said it raised $50 million in an oversubscribed private placement of convertible preferred shares. The deal priced for $40 million on May 6.
The preferreds will receive cumulative annual preferred dividends at 7% per annum and must convert to common stock at $42.00 per share within three years.
Kennedy Wilson's chief executive officer William J. McMorrow invested $5 million. The company's management team and existing shareholders purchased half of the offering, and a small group of investors purchased the balance.
The preferred funding, along with company funds, will be used to fund the co-investment piece of the company's growing real estate investment partnerships.
Kennedy Wilson is a real estate services and investment firm based in Beverly Hills, Calif.
| Issuer: | Kennedy-Wilson, Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $50 million
|
| Dividends: | 7%
|
| Conversion price: | $42.00
|
| Warrants: | No
|
| Investor: | William J. McMorrow (for $5 million)
|
| Pricing date: | May 6
|
| Settlement date: | May 30
|
| Stock symbol: | Pink Sheets: KWIC
|
| Stock price: | $40.00 at close May 5
|
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