KWE launches BBB rated £300 million Debut Senior Unsecured Bond

Posted on 25 June, 2015 by Neil Bird

Kennedy Wilson Europe Real Estate Plc (KWE) has announced the successful launch and pricing of a seven year, £300 million debut senior unsecured bond.

ID:64385791

The Bond has an annual fixed coupon of 3.95 per cent which is expected to fall to around 3.45 per cent when the company enters into swap arrangements to convert a portion of the proceeds into Euros, on or around closing. Both KWE and the Bond are rated BBB, denoting a stable outlook, by Standard & Poor’s.

Mary Ricks, President and CEO of the listed property company, said the launch of the Bond diversifies KWE’s funding sources by granting access to the unsecured capital debt markets.

It also extends the maturity of the company’s debt while moving towards a more flexible corporate debt structure which is accretive to acquisitions.

“The debut BBB rating from S&P demonstrates KWE’s financial strength and this combined with robust investor confidence in the KWE business has resulted in a successful first issue,” she added.

The Bond is expected to settle on 30 June and be listed on the regulated market of the London Stock Exchange.

J.P. Morgan Cazanove acted as Global Coordinator and sole advisor for the Bond and, along with Bank of America Merrill Lynch and Deutsche Bank, acted as Joint Lead Manager.

KWE invests in real estate and real estate loans throughout Europe. Its portfolio, which consists primarily of office and retail assets in the UK and Ireland, is valued at £2 billion.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants