By William Gullotti
Buffalo, N.Y., Jan. 12 – Kite Realty Group, LP sold $350 million of 5.5% senior notes due March 1, 2034 (Baa3/BBB-/BBB) at 98.67 to yield 5.673% on Friday, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The notes, which priced with a spread of 170 basis points over Treasuries, will not be convertible into or exchangeable for any other security of the operating partnership or company.
There is a make-whole call at Treasuries plus 30 bps until Dec. 1, 2033, followed by a par call.
J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, PNC Capital Markets LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and KeyBanc Capital Markets Inc. are the joint bookrunning managers.
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 bps to 165 bps through July 17, 2024. The applicable credit spread was 110 bps as of Sept. 30.
Kite Realty is an Indianapolis-based real estate investment trust focused on neighborhood and community shopping centers.
| Issuer: | Kite Realty Group, LP
|
| Amount: | $350 million
|
| Issue: | Senior notes
|
| Maturity: | March 1, 2034
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, PNC Capital Markets LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and KeyBanc Capital Markets Inc.
|
| Senior co-managers: | Regions Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Capital One Securities, Inc., Samuel A. Ramirez & Co., Inc., Scotia Capital (USA) Inc. and Truist Securities, Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 5.5%
|
| Price: | 98.67
|
| Yield: | 5.673%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 1, 2033; par call thereafter
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Cusip: | 49803XAE3
|
|
|
© 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.
