Company: KW
Filing Date: 2025-05-14
Form Type: 8-K
Source: 0001408100-25-000120
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Company: Kennedy-Wilson Holdings, Inc.
Filing Date: 2025-05-14
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

Update on Transactional and Operational Activity

Strategic Asset Recycling Plan Update

Kennedy-Wilson Holdings, Inc., a Delaware corporation (the “ Company”), continues to progress its previously-announced strategic asset recycling plan focusing on the sale and recapitalization of certain identified assets. On May 13, 2025, the Company completed a recapitalization transaction with respect to a hotel property that the Company owns through a joint venture. This transaction resulted in the Company receiving $125 million of cash and reducing the Company’s ownership interests in the joint venture from 50% to 35%. The underlying joint venture secured an increase in the loan amount under its existing mortgage by an additional $150 million (inclusive of a $25 million reserve) and the entirety of the $125 million initial proceeds were used by the joint venture to redeem a portion of the Company’s ownership interests described above.

Inclusive of the $125 million that was generated from the above-described transaction, the Company currently expects to generate over $400 million in cash from the program during the remainder of 2025. There can be no assurance that the Company will complete these asset sales and recapitalizations when currently expected or at all.

Unsecured Debt Update

The Company will use the $125 million it received from the above-described recapitalization transaction to reduce the amount outstanding under its corporate line of credit. Following this paydown, the Company will have approximately $151 million outstanding on its $550 million revolving line of credit. The Company currently intends to use the remaining proceeds it receives from the execution of its strategic asset recycling plan to continue to reduce the Company’s unsecured debt, including the repayment of the Kennedy Wilson Europe Unsecured Notes due November 2025 and amounts owed under its corporate line of credit.

Forward Looking Statements

This Current Report contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this Current Report including, but not limited to, statements regarding our future results of operations and financial position, including the achievement and timing of our financial outlook and free cash flow goals, our investment, disposition and recapitalization plans (including syndication plans) and anticipated returns on those investments, our business strategy, plans and objectives of management for future operations, and the impact of macroeconomic factors, including economic uncertainty, fluctuations in inflation and interest rates, and our response to such events, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such