Kennedy-Wilson to Sell Stock to Pay Down DebtMonday, July 16, 2012
Shares of Kennedy-Wilson Holdings Inc. fell 4.5 percent in after-hours trading on Monday after the real estate investment firm announced plans to sell 7.5 million shares in a public offering.
After the markets closed, the Beverly Hills company said that it expects to use net proceeds from the offering to repay all borrowings under its revolving credit facility. Any money left over will be used for working capital and general corporate purposes, including potential acquisitions and co-investments.
Kennedy-Wilson, which invests in commercial and multifamily properties in the United States, United Kingdom, Ireland and Japan, said it will grant underwriters a 30-day option to purchase up to an additional 1.13 million shares to cover any overallotments.
The company now has almost 52 million shares outstanding, with a public float of more than 32.7 million. At Monday’s closing price, the offering would raise about $106 million, or $122 million including the overallotment option.
Before the announcement, shares earlier closed down 36 cents, or 2.5 percent, to $14.14 on the New York Stock Exchange. In after-hours trading, shares fell 64 cents.