Kite Realty Group Trust (NYSE:KRG) (the “Company”) announced
today that its operating partnership, Kite Realty Group, L.P. (the
“Operating Partnership”), has priced $300 million of 4.00% Senior
Notes due 2026 (the “Notes”) in an underwritten public offering.
The Notes will be issued at 99.599% of par value with a yield to
maturity of 4.049%. Interest on the Notes is payable semi-annually
on April 1 and October 1 of each year, beginning on April 1, 2017.
The offering is scheduled to close on September 26, 2016, subject
to customary closing conditions.
The Operating Partnership intends to use $200 million of the net
proceeds from the offering to pay off its $200 million term loan
maturing July 1, 2019 (or January 1, 2020 if the six-month
extension option were to be exercised). The Operating Partnership
intends to use the remaining net proceeds for general corporate
purposes, which may include the repayment of amounts outstanding
under its unsecured revolving credit facility and other outstanding
indebtedness, acquisitions of additional properties, capital
expenditures, the expansion, redevelopment and/or improvement of
properties in its portfolio, working capital and other general
purposes.
U.S. Bancorp Investments, Inc., Merrill Lynch, Pierce, Fenner
& Smith Incorporated, Barclays Capital Inc., J.P. Morgan
Securities LLC and Wells Fargo Securities, LLC acted as joint
book-running managers for this offering. Citigroup Global Markets
Inc., KeyBanc Capital Markets Inc., PNC Capital Markets LLC,
Regions Securities LLC, SunTrust Robinson Humphrey, Inc., Capital
One Securities, Inc., Fifth Third Securities, Inc., The Huntington
Investment Company and Raymond James & Associates, Inc. served
as co-managers.
The offering is being made pursuant to a shelf registration
statement filed with the Securities and Exchange Commission (the
“SEC”) which became effective on March 11, 2015. A preliminary
prospectus supplement relating to the offering has been filed with
the SEC.
This press release is for information purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy any securities nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state or jurisdiction.
The offering may be made only by means of a prospectus and
related prospectus supplement. Copies of the prospectus supplement
and the accompanying prospectus relating to these securities may be
obtained, when available, by contacting U.S. Bancorp Investments,
Inc., 214 N. Tryon Street, 26th Floor, Charlotte, NC 28202,
telephone toll-free at 1-877-558-2607, or Merrill Lynch, Pierce,
Fenner & Smith Incorporated, NC1-004-03-43, 200 North College
Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus
Department, email: dg.prospectus_requests@baml.com, telephone
toll-free at 1-800-294-1322.
About Kite Realty Group
Trust
Kite Realty Group Trust is a full-service, vertically integrated
real estate investment trust engaged in the ownership, operation,
management, leasing, acquisition, construction, redevelopment and
development of neighborhood and community shopping centers in
selected markets in the United States. As of June 30, 2016, the
Company owned interests in a portfolio of 121 operating,
development and redevelopment properties totaling approximately 24
million total square feet across 20 states.
Safe Harbor
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
are based on assumptions and expectations that may not be realized
and are inherently subject to risks, uncertainties and other
factors, many of which cannot be predicted with accuracy and some
of which might not even be anticipated. Future events and actual
results, performance, transactions or achievements, financial or
otherwise, may differ materially from the results, performance,
transactions or achievements, financial or otherwise, expressed or
implied by the forward-looking statements. Risks, uncertainties and
other factors that might cause such differences, some of which
could be material, include, but are not limited to: national and
local economic, business, real estate and other market conditions,
particularly in light of low growth in the U.S. economy, as well as
economic uncertainty caused by fluctuations in the prices of oil
and other energy sources, financing risks, including the
availability of and costs associated with sources of liquidity, the
Company’s ability to refinance, or extend the maturity dates of,
its indebtedness, the level and volatility of interest rates, the
financial stability of tenants, including their ability to pay rent
and the risk of tenant bankruptcies, the competitive environment in
which the Company operates, acquisition, disposition, development,
joint venture, property ownership and management risks, the
Company’s ability to maintain its status as a real estate
investment trust for federal income tax purposes, potential
environmental and other liabilities, impairment in the value of
real estate property the Company owns, risks related to the
geographical concentration of the Company’s properties in Florida,
Indiana and Texas, insurance costs and coverage, risks associated
with cybersecurity attacks and the loss of confidential information
and other business interruptions, the dilutive effects of future
offerings of issuing additional securities, and other factors
affecting the real estate industry generally. The Company refers
you to the documents filed by the Company from time to time with
the SEC, specifically the section titled “Risk Factors” in the
Company’s and the Operating Partnership’s Annual Report on Form
10-K for the year ended December 31, 2015, which discuss these and
other factors that could adversely affect the Company’s results.
The Company undertakes no obligation to publicly update or revise
these forward-looking statements, whether as a result of new
information, future events or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160915006313/en/
Kite Realty Group TrustMaggie Daniels, CFA, 317-713-7644Investor
Relationsmdaniels@kiterealty.com
Kite Realty (NYSE:KRG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kite Realty (NYSE:KRG)
Historical Stock Chart
From Apr 2023 to Apr 2024