Moody’s assigns Kite notes Baa3

Moody’s Investors Service said it assigned a Baa3 rating to Kite Realty Group, LP’s, the operating subsidiary of Kite Realty Group Trust, private offering of $175 million of unsecured convertible notes due 2027.

Kite plans to grant the initial purchasers an option to buy up to an extra $25 million principal amount of notes.

“Associated with this offering, the REIT also intends to enter into one or more privately negotiated capped call transactions to mitigate any dilution from the number of common shares underlying the note,” Moody’s said in a press release.

Kite will use the proceeds to repay a portion of its indebtedness, including revolver borrowings and cover the costs associated with the capped call transaction. Any remaining proceeds will be used for other general corporate purposes.

The outlook remains stable.

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