Kennedy Wilson Secures $475M Credit Facility

LOS ANGELES—Kennedy Wilson has secured a $475 million revolving credit facility, an expansion of its former $300 million credit facility. The investor struck strategic partnerships with three new banks, Fifth Third Bank, BBVA Compass and City National Bank, which make a total of nine in the banking syndicate. The new facility has no outstanding balance and can be drawn as needed.

Kennedy Wilson declined to comment on the transaction or how they plan to use the funds; however, William McMorrow, chairman and CEO of Kennedy Wilson says, "This accomplishment adds to our already strong liquidity position and is a reflection of the confidence our key banks have in our business strategy going forward."

Although they would not comment on their strategic plans for the funds, GlobeSt.com has previously reported that the firm is expanding property management in the Midwest, where it already has a foothold of 39 assets in the office, multifamily and retail sectors. The company has also been active on the brokerage side of its business, with recent listings including the massive Oceanwide Plaza development in Downtown Los Angeles. Although the funds from the facility will likely be used for investment purposes, rather than brokerage, it is clear that the company is expanding on all fronts.

As part of the transaction, Kennedy Wilson closed its previous $300 million credit line. The remaining nine banks in the syndicate include Bank of America, JPMorgan Chase Bank, U.S. Bank National Association, Deutsche Bank AG New York Branch, East West Bank and Bank of Ireland. The company has been steadily expanding its credit facility since 2009, when it went public with a $30 million revolving credit facility.