Kennedy Wilson (NYSE:KW) recently announced the expansion of its unsecured revolving credit facility from $500 million to $550 million. The new credit facility has a three-year term and two six-month extension options. The loans under the new credit facility bear interest at a rate equal to SOFR plus a spread of 1.75% to 2.75%.
The company expressed appreciation for the support of its bank group in this expanded credit facility, highlighting the efficient and flexible source of funding it provides to act quickly on opportunities. Kennedy Wilson also noted the continued confidence in its business strategy, as reflected by the increase in the size of the facility.
The revolving credit facility currently has outstanding borrowings of approximately $175 million. Bank of America, N.A. will serve as the administrative agent, with BofA Securities, Inc., JPMorgan Chase Bank, N.A., and M&T Bank acting as the joint lead arrangers.
Kennedy Wilson, a leading real estate investment company with over $27 billion of assets under management, emphasized the value of the support from its bank group, both longstanding partners and new relationships established through this facility. The company also highlighted the extension of the fully extended maturity to September 2028.
In terms of financial performance, the announcement did not explicitly provide comparative metrics from the previous period. However, the increase in the credit facility, the outstanding borrowings, and the extension of the maturity date indicate the company's proactive approach to securing funding and its confidence in its future business prospects. Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $10.85. For more information, read the company's full 8-K submission here.
