Kennedy-Wilson Holdings (KW), which last month acquired a portfolio of 74 construction loans from struggling regional bank PacWest Bancorp for $2.4B, is handing off the lion's share of the deal to Fairfax Financial, a Toronto-based insurance company.
KW's agreement with Fairfax will see the Canadian firm pay $2.1B for 63 of the loans in the portfolio. Kennedy-Wilson said it would fund $100M of the deal, hold a 5% stake, and earn asset management fees from Fairfax, according to an SEC filing.
According to the terms of the deal, Fairfax will invest $200M in Kennedy-Wilson in the form of preferred equity.
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