Kite Realty talks $175 million six-year exchangeable notes to yield 0.25%-0.75%, up 25%-35%

By Abigail W. Adams

Portland, Me., March 17 – Kite Realty Group Trust plans to price $175 million of six-year exchangeable notes (Baa3) after the market close on Wednesday with price talk for a coupon of 0.25% to 0.75% and an initial exchange premium of 25% to 35%, according to a market source.

Barclays (lead left), BofA Securities Inc. and KeyBanc Capital Markets Inc. are underwriters for the Rule 144A offering, which carries a greenshoe of $25 million.

The notes will be issued by Kite Realty Group LP and exchangeable for Kite Realty Group shares.

The notes will be settled in cash, shares or a combination of both.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, to repay debt and for general corporate purposes.

Kite Realty is an Indianapolis-based retail focused real estate investment trust.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.