Kennedy Wilson prices $1.8 billion senior notes offering

Kennedy Wilson Holdings Inc. (NYSE: KW) announced its subsidiary has priced a private offering of $1.8 billion in senior notes, according to a company statement. The offering consists of $1.1 billion of 7.000% senior notes due 2031 and $700 million of 7.250% senior notes due 2033.

The notes are being offered to qualified institutional buyers under Rule 144A and to certain international investors under Regulation S of the Securities Act of 1933.

The company stated it expects to use proceeds from the offering to redeem existing senior notes due 2029 and 2030, make an offer to purchase 5.000% senior notes due 2031, and potentially repay debt under its credit facility or for general corporate purposes. These uses are contingent on the completion of a previously announced merger.

Kennedy Wilson is party to a merger agreement dated February 16, 2026, with a consortium led by Chairman and CEO William McMorrow and including Fairfax Financial Holdings Limited. Under the agreement, the company would be taken private.

If the notes offering closes before the merger is completed, proceeds will be held in escrow. Should the merger not close by November 16, 2026, the notes will be subject to mandatory redemption at 100% of their initial price plus accrued interest. Fairfax has committed to fund any shortfall needed for this redemption.

Kennedy Wilson is a real estate investment company with $36 billion in assets under management across the United States, United Kingdom and Ireland.

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