Kite Realty greenshoe exercised, lifts preferreds to $70 million

By Melissa Kory

Cleveland, Dec. 29 - Kite Realty Group Trust said its underwriters exercised the over-allotment option for 200,000, or $5 million, of its 8.25% series A cumulative redeemable perpetual preferred shares, raising the size to $70 million.

The trust originally sold 2.6 million shares, or $65 million, of the series at a liquidation price of $25 per share. The shares were priced on Nov. 30 and the offering closed on Dec. 7.

The shares are callable from December 2015 onward.

The joint bookrunners for this offering were Citigroup Global Markets Inc. and Raymond James & Associates.

Joint lead managers were KeyBanc Capital Markets Inc. and RBC Capital Markets Corp.

Co-managers were BMO Capital Markets Corp., Royal Bank of Scotland Group plc and Janney Montgomery Scott.

The estimated $67.5 million of proceeds will be used to repay in full the trust's unsecured term loan, which has an outstanding balance of $55 million. Remaining proceeds will be used to repay borrowings under the trust's revolving credit facility, which funds may be used for working capital and general corporate purpose.

The owner and operator of shopping centers and commercial real estate is based in Indianapolis.

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