Kennedy Wilson Europe has successfully launched a £300m unsecured bond as it diversifies its funding sources.
The bond carries a BBB rating from S&P, the same as Kennedy Wilson Europe, and carries an initial 3.95% coupon, which the company expects to reduce in time to 3.45% by swapping a portion of the bond into euros at around the time of the bond’s close.
The bond is expected to settle on 30 June and will be listed on the regular market of the London Stock Exchange.
Mary Ricks, president and chief executive of Kennedy Wilson Europe, said: “This successful bond issue allows KWE to access the unsecured debt capital markets and diversifies our funding sources. It extends the maturity of our debt while moving to a more flexible corporate debt structure and maintains an attractive cost of debt, which is accretive to our acquisitions.”
JP Morgan Cazenove was global co-ordinator and Bank of America Merrill Lynch, Deutsche Bank and JP Morgan Cazenove acted as joint lead arrangers. JP Morgan Cazenove was also the adviser on the ratings analysis.
