In a bid to increase its liquidity, real estate investment trust (REIT) Kennedy Wilson Holdings, Inc (KW) recently announced that it has priced 7.5 million shares at $13.00 a share. To cover the over-allotment options, Kennedy Wilson also plans to offer a 30-day option to the underwriters for purchasing an additional 1,125,000 shares.The offering is expected to close on July 24, 2012.
The company expects to generate net proceeds of approximately $92.4 million from the offering after the underwriting discount and estimated offering expenses. The net proceeds from the equity offer will be used to repay debt outstanding under its unsecured revolving credit facility, to fund property acquisitions and for general corporate purposes.
Kennedy Wilson reported first quarter 2012 net loss of $3.4 million or 7 cents per share compared to a net loss of $1.0 million or 2 cents per share in the year-ago quarter. As of March 31, 2012, the company’s cash position stood at $122.3 million versus $115.9 million in the prior quarter.
Headquartered in Beverly Hills, California, Kennedy Wilson offers a widearray of real estate services including auction, conventional sales, property services, and research and investment management with 23 offices in the U.S., Europe and Japan. The company continues to witness opportunities to grow its cash flow through reinvestment of the return of capital and gains realized from dispositions.
Kennedy Wilson currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock. One of its competitors, CBRE Group, Inc (CBG) also holds a Zacks #3 Rank.
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