Published on 12/3/2012 in the Prospect News High Yield Daily.
New Issue: Kennedy-Wilson sells upsized $100 million tap of 8¾% senior notes due 2019 at 105.25
By Paul A. Harris
Portland, Ore., Dec. 3 - Kennedy-Wilson, Inc. priced an upsized $100 million add-on to its 8¾% senior notes due April 1, 2019 (B2/BB-/) at 105.25 on Monday, according to an informed source.
The reoffer price, which came in the middle of the 105 to 105.5 price talk, rendered a 7.306% yield to worst.
Bank of America Merrill Lynch and Morgan Stanley & Co. LLC were the joint bookrunners for the quick-to-market deal, which was upsized from $75 million.
Proceeds will be used for working capital and general corporate purposes, including future acquisitions and co-investments.
Kennedy-Wilson is a Beverly Hills, Calif.-based real estate investment and services company.
| Issuer: | Kennedy-Wilson, Inc.
|
| Face amount: | $100 million, increased from $75 million
|
| Proceeds: | $105.25 million
|
| Maturity: | April 1, 2019
|
| Security description: | Add-on to 8¾% senior notes due April 1, 2019
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC
|
| Coupon: | 8¾%
|
| Price: | 105.25
|
| Yield to worst: | 7.306%
|
| 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: | Dec. 3
|
| Settlement date: | Dec. 6 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 105 to 105.5
|
| Marketing: | Quick to market
|
| Original issue: | $200 million priced at 99.297 to yield 8 7/8% in March 2011
|
| Previous add-on: | $50 million priced at 101.5 to 8.425% in April 2011
|
| Total issue size: | $350 million
|
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