Kite Realty closes on $200 million seven-year unsecured term loan

By Wendy Van Sickle

Columbus, Ohio, Oct. 26 – Kite Realty Group Trust and Kite Realty Group, LP closed on a new $200 million seven-year unsecured term loan, according to a Monday press release.

Pricing is currently at Libor plus 160 basis points.

The debt was arranged by KeyBanc Capital Markets Inc., Capital One, NA and Regions Capital Markets.

The partnership may request up to three delayed draws over the next eight months. Initial maturity is in October 2022.

“The delayed draw feature allows us to closely align the funding with intended uses and mitigate any duplicative interest costs,” chief financial officer Dan Sink said in the release. “Overall, this transaction exemplifies our commitment to further improving our credit metrics.”

The term loan also achieves the following other objectives, according to the release:

• Allows the company to unencumber one of the portfolio’s largest assets, City Center in White Plains, N.Y.;

• Provides the majority of the funding for about $130 million of 2016 securitized debt maturities with an average interest rate of 5.9%;

• Continues to manage floating-rate debt exposure as the company plans to hedge all or a portion of the term loan;

• Leaves only $100 million of securitized debt maturities through 2020; and

• Increases the value of the unencumbered pool by approximately $323 million to a total of over $2 billion.

Kite Realty is an Indianapolis-based real estate investment trust focused on neighborhood and community shopping centers.

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