Kennedy Wilson Europe Real Estate Plc (KWE) has announced the successful launch and pricing of a seven year, £300 million debut senior unsecured bond.
The Bond has an annual fixed coupon of 3.95 per cent which is expected to fall to around 3.45 per cent when the company enters into swap arrangements to convert a portion of the proceeds into Euros, on or around closing. Both KWE and the Bond are rated BBB, denoting a stable outlook, by Standard & Poor’s.
Mary Ricks, President and CEO of the listed property company, said the launch of the Bond diversifies KWE’s funding sources by granting access to the unsecured capital debt markets.
It also extends the maturity of the company’s debt while moving towards a more flexible corporate debt structure which is accretive to acquisitions.
“The debut BBB rating from S&P demonstrates KWE’s financial strength and this combined with robust investor confidence in the KWE business has resulted in a successful first issue,” she added.
The Bond is expected to settle on 30 June and be listed on the regulated market of the London Stock Exchange.
J.P. Morgan Cazanove acted as Global Coordinator and sole advisor for the Bond and, along with Bank of America Merrill Lynch and Deutsche Bank, acted as Joint Lead Manager.
KWE invests in real estate and real estate loans throughout Europe. Its portfolio, which consists primarily of office and retail assets in the UK and Ireland, is valued at £2 billion.
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