Kennedy Wilson Europe gives tender results for 3.95% bonds due 2022

By Taylor Fox

New York, Oct. 15 – Kennedy Wilson Europe Real Estate Ltd. announced the results of its tender offer to purchase for cash up to £325 million of its £500 million 3.95% bonds due 2022 (ISIN: XS1117292554), according to a company news release.

The offer expired at 11 a.m. ET Oct. 14 with £130.19 million of the bonds tendered for purchase.

Kennedy Wilson has set the final acceptance amount at £130.19 million and will accept for purchase all bonds validly tendered with no pro rata scaling.

The company will make a final payment of £133.1 million, comprising the purchase price and accrued interest. As previously reported, the purchase price for the bonds is 101% of par.

Payment for the tendered bonds will be funded with current cash in Kennedy Wilson’s balance sheet and loan proceeds of £100.5 million from two of four previously announced new secured financings.

Settlement is expected to occur on Oct. 22, after which £369.81 million of the bonds will remain outstanding.

The purpose of the offer was to optimize the company’s balance sheet and future interest expense.

J.P. Morgan Securities plc (+44 20 7134 2468; liability_management_EMEA@jpmoran.com) and Morgan Stanley & Co. International plc (+44 20 7677 5040; liabilitymanagmenteurope@morganstanley.com) are dealer managers of the offer. Lucid Issuer Services Ltd. (kennedywilson@lucid-is.com or +44 20 7704 0880) is the tender agent.

The company is a subsidiary of Kennedy Wilson Holdings Inc., a global real estate investment company based in Beverly Hills, Calif.

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