Kite Realty Group Trust Announces Closing of New $200 Million Seven Year Unsecured Term Loan
October 26 2015 - 04:15PM
Business Wire
Kite Realty Group Trust (NYSE:KRG) (the “Company”) and Kite
Realty Group, L.P. (the “Operating Partnership”) announced today
that the Operating Partnership closed on a new $200 million seven
year unsecured term loan arranged by KeyBanc Capital Markets Inc.,
Capital One, National Association, and Regions Capital Markets. The
unsecured term loan is pari passu with the Company’s existing
unsecured credit facilities and has an initial maturity of October
2022. Pricing on the unsecured term loan is currently set at LIBOR
plus 160 basis points.
Execution of the term loan achieves several objectives for the
Company:
- Aligns sources and uses as the term
loan includes a delayed draw feature which allows the Company to
request up to three separate draws over the next 8 months;
- Allows the Company to unencumber one of
the portfolio’s largest assets, City Center in White Plains, New
York;
- Provides the majority of the funding
for approximately $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.
“The efficient execution of the term loan results in a lower
overall cost of funds, an extended average debt maturity and
prepayment flexibility,” said Chief Financial Officer, Dan Sink.
“The delayed draw feature allows us to closely align the funding
with intended uses and mitigate any duplicative interest costs.
Overall, this transaction exemplifies our commitment to further
improving our credit metrics.”
About Kite Realty Group
Trust
Kite Realty Group Trust is a full-service, vertically integrated
real estate investment trust engaged in the ownership, operation,
management, leasing, acquisition, construction, redevelopment and
development of neighborhood and community shopping centers in
selected markets in the United States. As of June 30, 2015, the
Company owned interests in a portfolio of 122 operating,
development and redevelopment properties totaling approximately 25
million total square feet across 22 states. For more information,
please visit the Company’s website at www.kiterealty.com.
Safe Harbor
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements
are based on assumptions and expectations that may not be realized
and are inherently subject to risks, uncertainties and other
factors, many of which cannot be predicted with accuracy and some
of which might not even be anticipated. Future events and actual
results, performance, transactions or achievements, financial or
otherwise, may differ materially from the results, performance,
transactions or achievements, financial or otherwise, expressed or
implied by the forward-looking statements. Risks, uncertainties and
other factors that might cause such differences, some of which
could be material, include, but are not limited to: national and
local economic, business, real estate and other market conditions,
particularly in light of low growth in the U.S. economy, financing
risks, including the availability of and costs associated with
sources of liquidity, the Company’s ability to refinance, or extend
the maturity dates of, its indebtedness, the level and volatility
of interest rates, the financial stability of tenants, including
their ability to pay rent and the risk of tenant bankruptcies, the
competitive environment in which the Company operates, acquisition,
disposition, development, joint venture, property ownership and
management risks, the Company’s ability to maintain its status as a
real estate investment trust for federal income tax purposes,
potential environmental and other liabilities, impairment in the
value of real estate property the Company owns, risks related to
the geographical concentration of our properties in Florida,
Indiana and Texas, the dilutive effects of future offerings of
issuing additional securities, and other factors affecting the real
estate industry generally. The Company refers you to the documents
filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014, which discuss these and other factors that could
adversely affect the Company’s results. The Company undertakes no
obligation to publicly update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20151026005053/en/
Kite Realty Group TrustMaggie Kofkoff, CFAMedia & Investor
Relations317-713-7644mkofkoff@kiterealty.com
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