Kite Realty Group to price senior notes via three bookrunners

By Mary Katherine Stinson

Lexington, Ky., Jan. 12 – Kite Realty Group LP plans an offering of senior notes, according to a 424B5 filed with the Securities and Exchange Commission.

The notes will feature a make-whole call until some months before maturity date, and after that will be callable at par.

The notes will not be convertible into or exchangeable for any other security of the operating partnership or company.

J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and PNC Capital Markets LLC are the joint bookrunning managers.

U.S. Bank Trust Co., NA is the trustee.

Hogan Lovells US LLP will act as legal counsel for the issuer. Sidley Austin LLP will represent the underwriters.

Proceeds will be used to repay the company’s $120 million unsecured term loan with a maturity date of July 17, 2024, to repay in full the 4.58% senior notes, series B, due June 30, 2024 of which $150 million is outstanding and for general corporate purposes.

Repayment of the 2024 notes may occur either at maturity or earlier, which would require a make-whole payment. As of Sept. 30, the term loan’s variable interest rate has been swapped to a fixed rate of 1.58% plus a credit spread based on a ratings grid ranging from 80 basis points to 165 bps through July 17, 2024. The applicable credit spread was 110 bps as of Sept. 30.

Kite Realty is an Indianapolis-based retail-focused real estate investment trust.

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