By Stephanie N. Rotondo and Susanna Moon
Chicago, March 7 - Kite Realty Group Trust priced another $30 million of 8.25% series A cumulative redeemable perpetual preferred shares Wednesday at $25.1203 each after announcing the reopening earlier that day in a prospectus filed with the Securities and Exchange Commission.
The underwriters have a 30-day over-allotment option to purchase up to $4.5 million more preferreds.
The company sold 1.2 million of the $25 par securities. The greenshoe covers another 180,000.
Wells Fargo Securities LLC is the bookrunner. Raymond James & Associates Inc. is the lead manager. Barclays Capital Inc. and KeyBanc Capital Markets Inc. are the co-managers, and Janney Montgomery Scott LLC and City Securities Corp. are the junior co-managers.
Dividends are payable quarterly on the first day of March, June, September and December. The first dividend payable for the reopening will be for a full quarter in the amount of $0.515625 and will be paid June 1.
There is a change-of-control or delisting feature that results in the dividend increasing to 12.25%.
The preferreds can be redeemed on or after Dec. 7, 2015.
The preferreds are listed on the New York Stock Exchange under the ticker symbol "KRGPA."
Proceeds will be used to repay outstanding debt under a revolving credit facility and for other general corporate purposes, including, without limitation, the acquisition of properties, as well as development and redevelopment costs.
Settlement is expected on March 12.
The company originally sold $70 million or 2.8 million preferreds on Dec. 7, 2010.
Kite Realty is an Indianapolis-based real estate investment trust.
| Issuer: | Kite Realty Group Trust
|
| Issue: | Series A cumulative redeemable perpetual preferred shares
|
| Amount: | $30 million liquidation preference, $30,144,360 proceeds
|
| Greenshoe: | $4.5 million liquidation preference, $4,521,654 proceeds
|
| Maturity: | Perpetual
|
| Shares: | 1.2 million
|
| Price: | $25.1203 versus par of $25
|
| Dividend: | 8.25%
|
| Bookrunner: | Wells Fargo Securities LLC
|
| Lead manager: | Raymond James & Associates Inc.
|
| Co-managers: | Barclays Capital Inc. and KeyBanc Capital Markets Inc. (co-managers); Janney Montgomery Scott LLC and City Securities Corp. (junior co-managers)
|
| Call: | Beginning Dec. 7, 2015
|
| Pricing date: | March 7
|
| Settlement date: | March 12
|
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