Company: KW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001408100-25-000115
Chunk: 109

Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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$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 

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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 loss of $4.5 million in other comprehensive income due to the strengthening of the euro against the GBP during the period.  The Company intends to repay the KWE Notes through a combination of cash on hand, proceeds from asset sales and its unsecured credit facility.      The trust deed that governs the bonds contains various restrictive covenants for KWE, including, among others, limitations on KWE’s and its material subsidiaries’ ability to provide certain negative pledges.  The trust deed limits the ability of KWE and its subsidiaries to incur additional indebtedness if, on the date of such incurrence and after giving effect to the incurrence of the new indebtedness, (1) KWE’s consolidated net indebtedness (as defined in the trust deed) would exceed 60% of KWE’s total assets (as calculated pursuant to