Kite Realty Group Recasts Its $1.1 Billion Unsecured Revolving Credit Facility and Amends Its $250 Million Term Loan Facility

Rhea-AI Summary

Kite Realty Group Trust (NYSE: KRG) has successfully recasted its $1.1 billion unsecured revolving credit facility and amended its $250 million term loan facility. The revolving credit facility's term has been extended by three years, now maturing on October 3, 2028, with options for further extensions. The facility includes a Leverage Toggle for potentially more favorable pricing based on the company's total leverage ratio.

The term loan facility's interest rate margin was reduced, now accruing at Adjusted Term SOFR plus 0.75% to 1.60%, down from the previous 2.00% to 2.50%. Its maturity date remains October 24, 2028, assuming all extension options are exercised. KeyBank National Association served as the Administrative Agent for these transactions.

Positive

• Extended revolving credit facility maturity to October 3, 2028 with further extension options
• Introduced Leverage Toggle for potential favorable pricing on revolving credit facility
• Reduced interest rate margin on term loan facility (0.75% to 1.60% from 2.00% to 2.50% previously)
• Maintained $1.1 billion revolving credit facility and $250 million term loan facility sizes

Negative

• None.

News Market Reaction

-0.58%

1 alert

-0.58% News Effect

On the day this news was published, KRG declined 0.58%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

INDIANAPOLIS, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE: KRG) (the “Company”), a premier owner and operator of high-quality, open-air grocery-anchored centers and vibrant mixed-use assets, announced today that, on October 3, 2024, it closed on an amended $1.1 billion unsecured revolving credit facility (the “Revolving Credit Facility”) and an amended $250 million unsecured term loan facility (the “Term Loan Facility”).

The term of the Revolving Credit Facility was extended three years and now matures on October 3, 2028 with the option to further extend such maturity date by either one 1-year period or up to two 6-month periods, subject to the payment of an extension fee and certain other customary conditions. In addition to the extended maturity date, the Revolving Credit Facility provides the Company with the ability to obtain more favorable pricing in certain circumstances when the Company’s total leverage ratio meets defined targets (the “Leverage Toggle”).

The interest rate margin on the Term Loan Facility was reduced and includes a Leverage Toggle that generally conforms to the Revolving Credit Facility. Interest will now accrue at a rate of Adjusted Term SOFR plus a margin ranging from 0.75% to 1.60% (from 2.00% to 2.50% previously). The maturity date, assuming exercise of all extension options, of October 24, 2028 remains unchanged.

KeyBank National Association served as Administrative Agent.

About Kite Realty Group
Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has over 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of June 30, 2024, the Company owned interests in 178 U.S. open-air shopping centers and mixed-use assets, comprising approximately 27.6 million square feet of gross leasable space. For more information, please visit kiterealty.com.

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Contact Information: Kite Realty Group Trust

Tyler Henshaw
SVP, Capital Markets & Investor Relations
317.713.7780
thenshaw@kiterealty.com

FAQ

What is the new maturity date for KRG's revolving credit facility?

The new maturity date for Kite Realty Group's revolving credit facility is October 3, 2028, with options for further extensions.

How has the interest rate changed for KRG's term loan facility?

The interest rate for KRG's term loan facility now accrues at Adjusted Term SOFR plus a margin ranging from 0.75% to 1.60%, reduced from the previous 2.00% to 2.50%.

What is the Leverage Toggle introduced in KRG's credit facilities?

The Leverage Toggle is a feature that allows KRG to obtain more favorable pricing when the company's total leverage ratio meets defined targets.

How many properties does KRG own as of June 30, 2024?

As of June 30, 2024, Kite Realty Group owned interests in 178 U.S. open-air shopping centers and mixed-use assets, comprising approximately 27.6 million square feet of gross leasable space.