By Cristal Cody
Tupelo, Miss., Nov. 30 - Kite Realty Group Trust announced it sold $65 million of 8.25% series A cumulative redeemable perpetual preferred securities on Tuesday.
The trust sold 2.6 million shares of the series at a liquidation price of $25 per share. The preferreds are callable from December 2015 onward.
Citigroup Global Markets Inc. and Raymond James & Associates were the bookrunners.
Joint lead managers were KeyBanc Capital Markets Inc. and RBC Capital Markets Corp.
Co-managers included BMO Capital Markets Corp., Royal Bank of Scotland Group plc and Janney Montgomery Scott.
The underwriters have a 30-day over-allotment option to purchase up to an additional 390,000 preferred shares.
Proceeds will be used to repay the company's unsecured term loan, for working capital and for general corporate purposes, including the acquisition of properties and to repay borrowings under its revolving credit facility.
The Indianapolis-based real estate investment trust owns and operates neighborhood and community shopping centers in the United States.
| Issuer: | Kite Realty Group Trust
|
| Amount: | $65 million (2.6 million preferred shares)
|
| Greenshoe: | 390,000 shares
|
| Maturity: | Perpetual
|
| Securities: | Cumulative redeemable perpetual preferred securities
|
| Dividend: | 8.25%
|
| Price: | Par of $25
|
| Yield: | 8.25%
|
| Bookrunners: | Citigroup Global Markets Inc., Raymond James & Associates
|
| Lead managers: | KeyBanc Capital Markets Inc., RBC Capital Markets Corp.
|
| Co-managers: | BMO Capital Markets Corp., Royal Bank of Scotland Group plc, Janney Montgomery Scott
|
| Call: | On or after December 2015
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 7
|
| Distribution: | United States
|
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