S&P: Kennedy-Wilson unchanged after add-on

Standard & Poor’s said the BB- rating on Kennedy-Wilson Inc.’s senior unsecured notes is unchanged following news of the company’s $350 million add-on to its existing notes due in 2024.

The notes will be issued under the same indenture as the original 5 7/8% senior unsecured $300 million notes issued in March 2014, S&P said.

The company will use cash and net proceeds from the proposed notes to redeem the outstanding $350 million senior unsecured notes that bear an interest rate of 8¾%, the agency said.

The ratings reflect the company’s concentration in CRE, rapid growth and improving, but still moderate cash flow coverage of interest expenses, S&P said.

The company’s solid investment performance, strong niche position serving financial institutions and conservative financial management support the rating, the agency said.

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