Kite Realty extends, lowers pricing on unsecured revolver, term loan

By Toni Weeks

San Luis Obispo, Calif., July 1 – Kite Realty Group Trust entered into an amended and restated credit agreement on Tuesday to amend both its unsecured revolving credit and unsecured term loan credit facilities in connection with the closing of its merger with Inland Diversified Real Estate Trust, Inc.

The borrowing capacity of the revolving credit facility was increased to $500 million from $200 million and its maturity date was extended by 16 months to July 1, 2018 with an option to extend it an additional year. The revolver has a $250 million expansion feature, subject to some conditions and lender commitment.

Borrowings under the revolver accrue interest at Libor plus 140 basis points to 200 bps, a decrease from Libor plus 165 bps to 250 bps. The margin depends on the company’s leverage ratio.

The term loan maintains its current $230 million capacity and has a $170 million expansion feature subject to certain conditions and lender commitment. The maturity was extended by 10 months to July 1, 2019 with a six-month extension option.

Interest on term loan borrowings was reduced to Libor plus 135 bps to 190 bps from Libor plus 145 bps to 245 bps, with the margin dependent on leverage.

“Our recent merger and acquisition activity have significantly increased the size and quality of our unencumbered asset pool as we continue to transform to an unsecured balance sheet,” executive vice president and chief financial officer Daniel R. Sink said in a press release. “The terms of the amended and restated credit facilities will provide the company with greater financial flexibility, increased borrowing capacity and lower pricing.”

KeyBank NA is the administrative agent for the revolver with Bank of America, NA as syndication agent. Wells Fargo Bank, NA and U.S. Bank NA are co-documentation agents. KeyBanc Capital Markets Inc. and Bank of America Merrill Lynch are co-lead arrangers. JPMorgan Chase Bank, NA, Citibank, NA, Raymond James, NA, Huntington National Bank, Fifth Third Bank, Regions Bank, Barclays Bank plc, Capital One, NA, PNC Bank, NA, SunTrust Bank and Associated Bank NA are additional lenders.

The term loan facility is led by KeyBank as administrative agent. Wells Fargo is the syndication agent. JPMorgan Chase and Bank of America are co-documentation agents. KeyBanc Capital Markets and Wells Fargo Securities, LLC are co-lead arrangers. Raymond James, Huntington National Bank, Fifth Third, Regions and SunTrust are additional lenders.

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

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