Kite Realty upsizes revolver to $1.1 billion, adds new $300 million term loan

By Wendy Van Sickle

Columbus, Ohio, Aug. 2 – Kite Realty Group Trust and Kite Realty Group, LP amended their credit agreement on July 29 with KeyBank NA as administrative agent to provide for an increase in the revolver to $1.1 billion from $850 million and add a new $300 million unsecured term loan, according to an 8-K filing with the Securities and Exchange Commission.

The term loan has a scheduled maturity date of July 29, 2029 and accrues interest at adjusted SOFR plus a margin ranging from 115 basis points to 220 bps, depending on Kite Realty Group, LP’s credit rating. There is the potential to reduce the margin by 1 bp if certain greenhouse gas emission reduction targets are achieved.

A portion of the proceeds of the new term loan were applied to repay the operating partnership’s existing $200 million senior unsecured term loan that was scheduled to mature on Nov. 22, 2023.

The operating partnership has the option to increase the revolver and/or incur additional term loans up to $600 million for a total commitment amount of up to $2 billion.

KeyBanc Capital Markets Inc., BofA Securities, Inc. and Wells Fargo Securities, LLC are the bookrunners and lead arrangers for the revolving loans, with Capital One as an additional lead arranger. KeyBanc, PNC Capital Markets, LLC and Capital One are the bookrunners and lead arrangers for the term loans, with TD Bank, NA as and additional lead arranger.

The maximum leverage ratio of 60% and the maximum ratio of unsecured debt to the value of a pool of unencumbered properties of 60% were amended to allow these ratios to increase to 65% during the quarter in which a material acquisition occurs and the three immediately following fiscal quarters, as opposed to only one immediately following fiscal quarter before the amendment.

Also, SOFR was introduced to replace Libor as the interest reference rate.

The credit agreement was originally entered on July 8, 2021.

The parties’ term loan agreement dated July 17, 2019 with KeyBank as agent, which provides for a $120 million term loan due in 2024 and a $150 million term loan due in 2026, was also amended to replace Libor with SOFR.

Kite Realty is an Indianapolis-based real estate investment trust focused on neighborhood and community shopping centers.

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