Kennedy-Wilson said it launched a cash tender offer for its $600 million of 5.000% senior notes due 2031, offering $1,010 for each $1,000 of principal, or 101.0% of face value, plus accrued interest.
The offer was tied to the company’s proposed merger with a consortium led by Chairman and CEO William McMorrow and including Fairfax Financial Holdings. The deal is expected to trigger a fundamental change under the indenture, giving noteholders the right to require repurchase at 101% of principal plus accrued interest.
At the same time, Kennedy-Wilson issued redemption notices for its 4.750% senior notes due 2029 and 4.750% senior notes due 2030. Both issues are set to be redeemed in full on June 16, 2026, if the merger closes and the company issues at least $1.8 billion of senior debt.
The company already priced $1.8 billion of new senior notes on May 14: $1.1 billion of 7.000% notes due 2031 and $700 million of 7.250% notes due 2033. That financing is expected to close around May 29, 2026.
Kennedy-Wilson said the 2031 notes tender offer will expire around June 15, 2026, with payment expected the next day. It said there is no cap and no proration on the offer, and any notes not tendered will remain outstanding under existing terms. Following these announcements, the company's shares moved 0.14%, and are now trading at a price of $11.025. Check out the company's full 8-K submission here.
