Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 207

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 207
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 (as defined in the indenture) is greater than 1.50 to 1.00, subject to certain exceptions.  As of March 31, 2025, the maximum balance sheet leverage ratio was 1.43 to 1.00.  See Note 15 for the guarantor and non-guarantor financial statements.     As of March 31, 2025, the Company was in compliance with all financial covenants.

NOTE 10—KWE UNSECURED BONDS

    The following table details KWE unsecured bonds as of March 31, 2025 and December 31, 2024:(Dollars in millions)March 31, 2025December 31, 2024KWE Euro Medium Term Note Programme(1)$324.0 $310.0 Unamortized loan fees(0.2)(0.2)Total KWE Unsecured Bonds$323.8 $309.8 (1)  The KWE unsecured bonds balances include unamortized debt discounts. Debt discounts represent the difference between the fair value of debt at issuance and the principal value of debt and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method.  The net unamortized discount as of March 31, 2025 and December 31, 2024 was $0.5 million and $0.5 million, respectively.    As of March 31, 2025, KWE has senior unsecured notes for an aggregate principal amount of approximately $324.5 million (based on March 31, 2025 rates) (€300 million) (the "KWE Notes"). The KWE Notes were issued at a discount and have a carrying value of $324.0 million, with an annual fixed coupon of 3.25% and mature in November 2025.  As KWE invested proceeds from the KWE Notes to fund equity investments in euro denominated assets, KWE designated the KWE 

22

Kennedy-Wilson Holdings, Inc.Notes to Consolidated Financial Statements(Unaudited)

Notes as net investment hedges under ASC Topic 815.  Subsequent fluctuations in foreign currency rates that impact the carrying value of the KWE Notes are recorded to accumulated other comprehensive income.  During the three months ended March 31, 2025, Kennedy Wilson recorded a