By Lisa Kerner
Charlotte, N.C., Sept. 3 – Kite Realty Group, LP entered into an agreement on Aug. 28 to privately place three series of senior notes totaling $250 million.
The notes will be issued as follows:
• $95 million of 4.23% series A notes due Sept. 10, 2023;
• $80 million of 4.47% series B notes due Sept. 10, 2025; and
• $75 million of 4.57% series C notes due Sept. 10, 2027.
Proceeds will be used for the full repayment of amounts outstanding under the company’s credit facility and for other general corporate purposes, which may include the repayment of other outstanding debt, capital expenditures, working capital and the expansion, redevelopment and/or improvement of properties.
The closing is expected to occur on Sept. 10, according to an 8-K filing with the Securities and Exchange Commission.
Interest on the notes is payable semiannually on March 10 and Sept. 10 of each year.
The notes have a make-whole call at Treasuries plus 50 basis points.
Under the note purchase agreement, Kite Realty may not permit its leverage ratio to exceed 0.6 to 1.0.
Purchasers include Prudential Insurance Co. of America, Farmers Insurance Exchange, Mid Century Insurance Co., Gibraltar Life Insurance Co., Ltd., Zurich American Insurance Co., Farmers New World Life Insurance Co., Knights of Columbus, MTL Insurance Co., Colorado Bankers Life Insurance Co., Catholic United Financial, Dearborn National Life Insurance Co., Blue Cross and Blue Shield of Florida, Inc., Catholic Financial Life, New Era Life Insurance Co., UnitedHealthcare Insurance Co., Polish National Alliance of U.S. of NA, Minnesota Life Insurance Co., Hartford Life Insurance Co., Farm Bureau Life Insurance Co. of Michigan, Nationwide Life Insurance Co., Genworth Life and Annuity Insurance Co., Guardian Life Insurance Co. of America, Forethought Life Insurance Co., RiverSource Life Insurance Co. of New York, Principal Life Insurance Co., Ohio National Life Insurance Co., and Fidelity & Guaranty Life Insurance Co.
The notes have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The issuer is the operating partnership of Kite Realty Group Trust, an Indianapolis-based real estate investment trust focused on neighborhood and community shopping centers.
| Issuer: | Kite Realty Group LP
|
| Issue: | Senior notes
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| Amount: | $250 million
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| Price: | Par
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| Call option: | Make-whole call at Treasuries plus 50 bps
|
| Distribution: | Private placement
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| Pricing date: | Aug. 28
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| Settlement date: | Sept. 10
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| Purchasers: | Prudential Insurance Co. of America, Farmers Insurance Exchange, Mid Century Insurance Co., Gibraltar Life Insurance Co., Ltd., Zurich American Insurance Co., Farmers New World Life Insurance Co., Knights of Columbus, MTL Insurance Co., Colorado Bankers Life Insurance Co., Catholic United Financial, Dearborn National Life Insurance Co., Blue Cross and Blue Shield of Florida, Inc., Catholic Financial Life, New Era Life Insurance Co., UnitedHealthcare Insurance Co., Polish National Alliance of U.S. of NA, Minnesota Life Insurance Co., Hartford Life Insurance Co., Farm Bureau Life Insurance Co. of Michigan, Nationwide Life Insurance Co., Genworth Life and Annuity Insurance Co., Guardian Life Insurance Co. of America, Forethought Life Insurance Co., RiverSource Life Insurance Co. of New York, Principal Life Insurance Co., Ohio National Life Insurance Co., and Fidelity & Guaranty Life Insurance Co.
|
|
|
| Series A notes
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| Amount: | $95 million
|
| Coupon: | 4.23%
|
| Maturity: | Sept. 10, 2023
|
|
|
| Series B notes
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| Amount: | $80 million
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| Coupon: | 4.47%
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| Maturity: | Sept. 10, 2025
|
|
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| Series C notes
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| Amount: | $75 million
|
| Coupon: | 4.57%
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| Maturity: | Sept. 10, 2027
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