Kennedy-Wilson obtains new three-year $475 million unsecured revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 11 – Kennedy-Wilson, Inc. entered into a three-year $475 million unsecured revolving credit facility on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

The revolver matures Dec. 10, 2018 and has a one-year extension option.

Borrowings bear interest at Libor plus either 150 basis points or 200 bps, depending on the consolidated leverage ratio, and there is a usage fee of either 20 bps or 40 bps.

The revolver was undrawn at closing.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC acted as joint bookrunners; Bank of America, NA as administrative agent; JPMorgan Chase Bank, NA as syndication agent; and Deutsche Bank Securities Inc. and U.S. Bank NA as co-documentation agents.

The facility replaces a $300 million line of credit dated July 22, 2010.

The credit agreement has covenants that limit the company and certain subsidiaries’ ability to incur additional debt, repurchase capital stock or debt, sell assets or subsidiary stock, create or permit liens on assets, engage in transactions with affiliates, enter into sale/leaseback transactions, issue subsidiary equity and enter into consolidations or mergers.

In a press release, Kennedy-Wilson said that it has been able to expand its credit facility from a $30 million line of credit when it entered the public market in 2009 by growing its equity, assets and recurring income.

Kennedy-Wilson is a vertically integrated real estate investment and services company with its headquarters in Beverly Hills, Calif.

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