New Issue: Kennedy-Wilson sells $200 million 8¾% eight-year notes to yield 8 7/8%

By Paul A. Harris

Portland, Ore., March 31 - Kennedy-Wilson, Inc. priced a $200 million issue of 8¾% eight-year senior notes (B1/BB-/) at 99.297 to yield 8 7/8% on Thursday, according to an informed source.

The deal priced in line with price talk of an 8¾% to 9% yield, at a slight discount.

Merrill Lynch and Morgan Stanley & Co. Inc. were the joint bookrunners.

The Beverly Hills, Calif.-based real estate investment and services company plans to use the proceeds to repay all outstanding borrowings under its unsecured revolving credit facility and for general corporate purposes.

Issuer:	Kennedy-Wilson, Inc.
Face amount:	$200 million
Proceeds:	$198,594,000
Maturity:	April 1, 2019
Securities:	Senior notes
Bookrunners:	Merrill Lynch, Morgan Stanley & Co. Inc.
Co-managers:	JMP Securities, CJS Securities, Inc.
Coupon:	8¾%
Price:	99.297
Yield:	8 7/8%
Spread:	579 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2015, then callable at 104.375, 102.188, par on and after April 1, 2017
Equity clawback:	35% at 108.75 until April 1, 2014
Change-of-control put:	101%
Trade date:	March 31
Settlement date:	April 5
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	8¾% to 9%, including slight OID
Marketing:	Roadshow

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