Kennedy-Wilson enters $500 million revolver, $200 million term loan

By Tali Rackner

Minneapolis, Oct. 4 – Kennedy-Wilson Holdings, Inc. wholly owned subsidiary Kennedy-Wilson Inc. entered into a $700 million amended and restated unsecured revolving credit and term loan facility on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent.

The facility, which matures on March 31, 2021, is comprised of a $500 million revolving line of credit and a $200 million term loan facility.

Interest under the revolver is equal to Libor plus 175 basis points to 275 bps, depending on the consolidated leverage ratio as of the applicable measurement date.

Term loan borrowings bear interest at Libor plus 165 bps to 265 bps, also based on leverage.

The credit agreement contains certain financial covenants requiring Kennedy-Wilson to maintain a maximum consolidated leverage ratio of 65% and a minimum fixed charge coverage ratio of 1.7 times, among other requirements.

The facility is intended to amend and restate existing revolver, which currently has an outstanding balance of $350 million, the filing said.

Merrill Lynch, Pierce, Fenner & Smith Inc. and JPMorgan Chase Bank, NA acted as joint lead arrangers and bookrunners on the deal.

Kennedy-Wilson Holdings is a Beverly Hills, Calif.-based real estate investment firm.

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