BEVERLY HILLS, CA-Kennedy-Wilson Holdings Inc. said Monday that the company plans to issue 6 million shares of common stock. BofA Merrill Lynch and Deutsche Bank Securities will act as “book running managers,” or the entities that control stock purchase orders from investors.

Kennedy-Wilson plans to use the capital infusion to “repay borrowings under its revolving credit facility and for working capital and general corporate purposes, including future acquisitions and co-investments,” according to a statement released by the company. A company spokesperson declined comment on the proposed stock offering, citing SEC rules controlling statements about public stock offerings.

Although the company would not comment, the public offering could be interpreted as a optimistic move by the locally-based real estate investment firm, because part of the proceeds of the stock sale appear destined for new investment activity in the short term. 

The company also plans to grant the underwriters a 30-day option to purchase up to 900,000 shares to cover overallotments, if any.
Kennedy Wilson is traded on the New York Stock Exchange under the symbol KW. On Monday evening, the company’s stock closed at $11.94 per share, or a 9-cent drop from the previous day’s closing. As of Monday, Kennedy-Wilson’s market capitalization was $537 million.

Founded in 1977, Kennedy Wilson is a real estate investment and services specializing in auction, conventional sales, property services and investment management. Through its fund management and separate account businesses, Kennedy Wilson invests in real estate in the U.S., Europe and Japan, and maintains offices in each of those markets.