Kite Realty Group gets $250 million term loan at Libor plus 200 bps

By Wendy Van Sickle

Columbus, Ohio, Oct. 25 – Kite Realty Group Trust said operating partnership Kite Realty Group, LP closed on a new seven-year $250 million unsecured term loan.

The loan was arranged by Associated Bank, NA, Fifth Third Bank; KeyBank NA, Regions Bank and Huntington National Bank.

KeyBank is administrative agent.

The term loan has an initial maturity date of 2025 and has three one-year options that would extend the maturity date to 2028, subject to customary conditions, according to a press release.

Initial pricing is Libor plus 200 basis points.

Kite plans to fix the interest rate through an interest swap for the full $250 million within 30 days of closing.

The term loan extends Kite Realty’s debt portfolio by a year to 6.2 years.

In addition, Kite Realty fully retired its seven-year $200 million term loan due 2022 priced at Libor plus 160 bps and prepaid $50 million of its $200 million five-year term loan due in 2021.

Kite Realty said it continues to ladder its debt maturity schedule, with no more than 20% of its debt coming due in any single calendar year versus 26% prior to the transaction.

“We want to thank our lending partners for helping us originate what we believe is a pioneering credit product in our sector,” John Kite, chief executive officer of Kite Realty, said in the release.

“This is a unique loan in that it demonstrates our commitment to de-risk our balance sheet while materially improving our financial flexibility. I challenged our team to think creatively and execute swiftly and that is exactly what they did.”

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.