Kennedy Wilson Europe Real Estate (KWE) has issued €150 mln in unsecured notes to help refinance its existing secured debt and for general corporate purposes.
The new notes reflect a yield of 3.039% and will mature on 12 November 2025. The issuance comes on top of the €400 mln in outstanding senior unsecured notes which were issued under KWE's EMTN programme in November 2015.
The new notes shall be consolidated and form a single series with the initial notes. The notes, the EMTN programme and KWE are all rated BBB (outlook stable) by Standard & Poor’s.
Mary Ricks, president and CEO of KWE, commented: 'This successful bond tap delivers on our intention to move to a more flexible debt structure and increases the notes to benchmark size, improving liquidity for bondholders. Our mix of fixed rate debt improves to 59%, fixed rate or hedged debt improves to 87%, and our overall debt term to maturity extends to 6.4 years, whilst maintaining an attractive cost of debt at 2.85%, which remains accretive to our running yields.'
The issue and settlement date for the new notes is expected to be 19 April 2016. BofA Merrill Lynch, JP Morgan Cazenove and Morgan Stanley acted as joint bookrunners.
London-listed KWE invests in real estate and real estate loans across Europe. Its existing portfolio, in excess of £2.5 bn, is primarily invested across office and retail in the UK and Ireland, weighted towards London, the South East and Dublin.
