Kite Realty extends, lowers pricing on revolver, portion of term loan

By Wendy Van Sickle

Columbus, Ohio, July 29 – Kite Realty Group Trust entered into an amended and restated credit agreement on Thursday extending its $500 million revolving credit facility and part of its $400 million of term loan facilities, according to an 8-K filing with the Securities and Exchange Commission.

The revolving credit facility was extended to July 28, 2020 from July 1, 2018 with an option to extend it two additional six-month periods. The revolver has a $500 million expansion feature, subject to some conditions and lender commitment.

Borrowings under the revolver accrue interest at Libor plus 135 basis points to 195 bps, a decrease from Libor plus 140 bps to 200 bps. The margin depends on the company’s leverage ratio.

The revolver has sublimits of $50 million apiece for letters of credit and swingline loans.

Half of the term loan, the term loan A, maintains its July 1, 2019 maturity, which will have a one-year extension option. The maturity of the other $200 million, the term loan B, was extended to July 28, 2021.

Interest on term loan B borrowings was reduced to Libor plus 130 bps to 190 bps from Libor plus 135 bps to 190 bps. Interest on term loan A borrowings was maintained at Libor plus 135 bps to 190 bps. In each case, the margin is dependent on leverage.

The credit agreement also sets separate ratings-based grids the borrower can elect to use if it has achieved investment-grade ratings. Pricing under those grids was reduced to Libor plus 85 bps to 155 bps from Libor plus 87.5 bps to 170 bps for revolver borrowings. For term loan B borrowings, it was reduced to Libor plus 90 bps to 175 bps from Libor plus 95 bps to 190 bps, which continues to be the rate for term loan A borrowings.

The revolver has a commitment fee of 15 bps to 20 bps for leveraged-based pricing or 12.5 bps to 30 bps for investment grade-ratings based pricing.

The company must comply with covenants including, among others, a maximum leverage ratio of 60%, a minimum adjusted EBITDA to fixed charge coverage ratio of 1.5 times, a maximum ratio of secured recourse debt to total asset value of 0.15 times; a maximum ratio of secured recourse debt to total asset value of 0.15 times and a minimum tangible net worth of $1.4 billion.

KeyBank NA is the administrative agent for the revolver with Bank of America, NA and JPMorgan Chase Bank, NA as co-syndication agents. Wells Fargo Bank, NA and U.S. Bank NA are co-documentation agents. KeyBanc Capital Markets Inc., BofA Merrill Lynch and JPMorgan Chase are co-lead arrangers.

KeyBank is administrative agent for the term loan. Wells Fargo is the syndication agent for the term loan A. Regions Bank, U.S. Bank and SunTrust Bank are the co-syndication agents for the term loan B. Keybanc and Wells Fargo are the lead arrangers for the term loan A. Keybanc, Regions Capital Markets, U.S. Bank and SunTrust Robinson Humphrey are the lead arrangers for the term loan B.

JPMorgan, U.S. Bank and Bank of America are the co-documentation agents for the term loan A. Wells Fargo and PNC Bank, NA are the co-documentation agents for the term loan B.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.