Kennedy Wilson Europe Real Estate (KWE) has launched its first senior unsecured bond in a £300m issue.
The seven-year bond, rated BBB by Standard & Poor’s, has an annual fixed coupon of 3.95%. The coupon is expected to reduce to around 3.45% upon KWE entering into swap arrangements to convert a portion of the proceeds into euros.
“This successful bond issue allows KWE to access the unsecured debt capital markets and diversifies our funding sources,” said Mary Ricks, president and chief executive of KWE.
“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.”
The bond is to be listed on the regulated market of the London Stock Exchange and scheduled to settle on 30 June 2015.
KWE successfully raised £351.5m through a share issue last October. New shares were issued at a price of £10.06 through a firm placing and an open offer, increasing the share capital of the firm by 35%.
In the latest issue, JP Morgan Cazenove acted as global coordinator for the bond. Bank of America Merrill Lynch, Deutsche Bank and JP Morgan Cazenove acted as joint lead managers. JP Morgan Cazenove was sole adviser on KWE’s rating analysis.