Kennedy-Wilson Holdings, Inc.
) wholly owned subsidiary, Kennedy-Wilson, Inc., announced the
upsizing and pricing of 5.875% senior notes due 2024. In
particular, the size of the offering has been increased to $300
million from $250 million disclosed earlier. The offering is
expected to close on March 25, 2014, though it is subject to some
customary closing conditions, and interests on them are payable
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The move will help Kennedy Wilson enhance its financial
flexibility. Specifically, the company would use the amount for
repaying its entire outstanding borrowings under its unsecured
revolving credit facility and meet other corporate needs like
future acquisitions and co-investments.
Furthermore, Moody's Investors Service, the rating arm of
) assigned a B2 rating to Kennedy-Wilson's new notes and the
rating outlook was stable. Increasing real estate asset book and
a notable portfolio of joint venture investments are reflected in
the ratings assigned.
While the company has a vertically-integrated operating platform,
its portfolio is concentrated in California, Hawaii and other
western states (they made up over 60% of its investments in
The rating agency expects the company to experience an
improvement in its leverage profile and earnings quality as well
as expand its business with adequate liquidity and without credit
metrics dilution, which is reflected in their stable outlook.
We believe that the current move will enable Kennedy Wilson to
strengthen its liquidity and focus on diversifying efforts. This
would go a long way in improving its top line going forward.
Kennedy Wilson currently carries a Zacks Rank #3 (Hold).
Investors interested in the real estate operations industry may
also consider stocks like
). While HFF holds a Zacks Rank #1 (Strong Buy), FirstService
carries a Zacks Rank #2 (Buy).