Kennedy Wilson closes first tranche of previously-announced loan purchase from PacWest
Kennedy Wilson (KW) said Friday it closed on the initial tranche of loans as part of a $5.7 billion loan portfolio acquisition from Pacific Western Bank (PACW), just days after it said it would sell a 95% stake in the loans to Fairfax Financial holdings Ltd. . PacWest CEO Paul Taylor said the deal "will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking," The first tranche of loans acquired for $1.6 billion by Kennedy Wilson and Fairfax Financial totaled $3.25 billion in total commitments and $1.8 billion in current principal balance. The company plans to close an additional 12 loans totaling $800 million in commitments on a rolling basis by no later than the end of July. Floating-rate construction loans with an average interest rate of approximately 8.6% make up the purchase. About 80% of the portfolio is secured by multifamily and student housing properties and the remainder including mainly industrial, hotel, and life science assets. "We are pleased to expand our debt portfolio in such a significant way, which strategically positions our private credit platform for substantial future growth," said Matt Windisch, executive vice resident at Kennedy Wilson. PacWest stock is up 0.7% in premarket trades. Kennedy Wilson stock is up 8.9% in 2023, compared to an 11.8% gain by the S&P 500 .
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-09-23 0623ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Never Mind Market Efficiency: Are the Markets Sensible?
-
Starbucks Stock Could Use a Pick-Me-Up After Big Selloff; Is it a Buy?
-
5 Cheap Stocks to Buy From an Attractive Part of the Market
-
Markets Brief: All Eyes On Inflation
-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
The Best REITs to Buy
-
3 Hot Stocks to Buy That Still Look Undervalued
-
After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
Today’s Market Volatility Could Provide Tomorrow’s Opportunities
-
40 of the Best Investment Picks
-
Tech Stock Dividends Are Changing the Face of Dividend Growth Investing
-
Roblox Earnings: Weakening Engagement Has Weighed On Growth
-
The Best Gaming Stocks to Buy