Kennedy-Wilson Holdings, Inc.
) recently priced the underwritten public offering of 6 million
common shares at $18.50 per share. The company also granted a
30-day option to underwriters to buy up to 0.9 million additional
common shares, to cover any over-allotments. The move will add to
the company's flexibility.
Kennedy-Wilson intends to utilize the proceeds from the
offering to pay off the outstanding debt worth $50.0 million
under the unsecured revolving credit facility. Moreover, the
company plans to use the remaining proceeds to finance proposed
acquisitions and co-investments as well as for other corporate
Notably, Deutsche Bank Securities - an operating arm of
Deutsche Bank AG
) - is acting as the sole underwriter. The common share offering
is slated to close on Sep 13, 2013, upon fulfillment of customary
Though this public offering will result in share dilution for
Kennedy-Wilson, the payment of debt is encouraging as it will
reduce interest expenses. Moreover, strategic investments will
help the company to enhance its portfolio quality, which will
consequently be accretive to its earnings going forward.
Kennedy-Wilson, which offers a wide array of real estate
services - such as auction, conventional sales, property
services, and research and investment management - is actively
engaged in expanding its portfolio in vibrant markets across the
U.S., the U.K., Spain, Ireland and Japan.
In connection to this, last week, Kennedy-Wilson bought a
four-story Class A office building and seven-story parking
structure - 5161 Lankershim Boulevard - in North Hollywood for
$45 million. Moreover, the company bought a portfolio of 8
shopping centers situated across England and Scotland, out of
administration for $388 million (£250 million). We expect these
acquisitions to enhance Kennedy-Wilson's rental revenue growth,
Kennedy-Wilson currently carries a Zacks Rank #3 (Hold). Other
better-performing companies include
E-House (China) Holdings Ltd
). Both these stocks have a Zacks Rank #1 (Strong Buy).
DEUTSCHE BK AG (DB): Free Stock Analysis
E-HOUSE CHINA (EJ): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
KENNEDY-WILSON (KW): Free Stock Analysis
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