Kite Realty Group Recasts Its $1.1 Billion Unsecured Revolving Credit Facility and Amends Its $250 Million Term Loan Facility
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.
Kite Realty Group Trust (NYSE: KRG) ha recentemente ristrutturato il suo prestito revolving non garantito da 1,1 miliardi di dollari e ha modificato il suo prestito a termine da 250 milioni di dollari. Il termine del prestito revolving è stato esteso di tre anni, con scadenza ora fissata al 3 ottobre 2028, con opzioni per ulteriori proroghe. Il prestito include un Leverage Toggle per potenziali condizioni più favorevoli in base al rapporto di leva totale dell'azienda.
Il margine di interesse del prestito a termine è stato ridotto, ora accumulando a Adjusted Term SOFR più 0,75% a 1,60%, rispetto al precedente 2,00% a 2,50%. La data di scadenza rimane 24 ottobre 2028, supponendo che tutte le opzioni di proroga siano esercitate. KeyBank National Association ha svolto il ruolo di Agente Amministrativo per queste transazioni.
Kite Realty Group Trust (NYSE: KRG) ha reestructurado con éxito su línea de crédito rotativa no asegurada de 1.1 mil millones de dólares y ha modificado su préstamo a plazo de 250 millones de dólares. El plazo de la línea de crédito rotativa se ha extendido por tres años, ahora venciendo el 3 de octubre de 2028, con opciones para extensiones adicionales. La instalación incluye un Leverage Toggle para precios potencialmente más favorables, basado en el ratio de apalancamiento total de la empresa.
El margen de tasa de interés de la instalación de préstamo a plazo se ha reducido, ahora acumulando a Adjusted Term SOFR más 0.75% a 1.60%, por debajo del anterior 2.00% a 2.50%. Su fecha de vencimiento se mantiene el 24 de octubre de 2028, asumiendo que se ejercen todas las opciones de extensión. KeyBank National Association actuó como Agente Administrativo para estas transacciones.
Kite Realty Group Trust (NYSE: KRG)는 11억 달러 규모의 무담보 리볼빙 신용 시설을 성공적으로 재구성하고 2억 5천만 달러 규모의 기한부 대출 시설을 수정했습니다. 리볼빙 신용 시설의 기간은 3년 연장되어 현재 2028년 10월 3일에 만료되며 추가 연장 옵션이 있습니다. 이 시설은 회사의 총 레버리지 비율에 따라 더욱 유리한 가격을 위한 Leverage Toggle이 포함되어 있습니다.
기한부 대출 시설의 이자율 마진이 줄어들어 현재 조정된 기간 SOFR에 0.75%에서 1.60%로 발생하고 있으며, 이전의 2.00%에서 2.50%에서 감소했습니다. 만기일은 2028년 10월 24일로 유지되며, 모든 연장 옵션이 행사된 것으로 가정합니다. KeyBank National Association은 이 거래의 행정 대리인 역할을 수행했습니다.
Kite Realty Group Trust (NYSE: KRG) a réussi à restructurer son crédit renouvelable non garanti de 1,1 milliard de dollars et à modifier son prêt à terme de 250 millions de dollars. Le terme du crédit renouvelable a été prolongé de trois ans, il arrivera maintenant à échéance le 3 octobre 2028, avec des options pour des prolongations supplémentaires. L'installation comprend un Leverage Toggle pour des conditions potentiellement plus favorables en fonction du ratio d'endettement total de la société.
La marge de taux d'intérêt du prêt à terme a été réduite, maintenant elle est calculée à Adjusted Term SOFR plus 0,75 % à 1,60 %, contre 2,00 % à 2,50 % auparavant. Sa date d'échéance reste le 24 octobre 2028, en supposant que toutes les options de prolongation soient exercées. KeyBank National Association a agi en tant qu'agent administratif pour ces transactions.
Kite Realty Group Trust (NYSE: KRG) hat erfolgreich sein ungesichertes revolvierendes Kreditgeschäft in Höhe von 1,1 Milliarden Dollar umstrukturiert und sein 250 Millionen Dollar-Darlehen geändert. Die Laufzeit des revolvierenden Kreditgeschäfts wurde um drei Jahre verlängert und endet nun am 3. Oktober 2028, mit Optionen für weitere Verlängerungen. Die Einrichtung enthält einen Leverage Toggle für potenziell günstigere Konditionen basierend auf dem gesamten Verschuldungsgrad des Unternehmens.
Der Zinssatzmarge des Darlehens wurde gesenkt, es wird nun zu Adjusted Term SOFR plus 0,75 % bis 1,60 % angerechnet, gegenüber zuvor 2,00 % bis 2,50 %. Das Fälligkeitsdatum bleibt der 24. Oktober 2028, vorausgesetzt, alle Verlängerungsoptionen werden ausgeübt. KeyBank National Association fungierte als Verwaltungsagent für diese Transaktionen.
- 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
- None.
Insights
Kite Realty Group's refinancing of its
- Extended maturity for the revolving credit facility to October 2028, with additional extension options
- Potential for more favorable pricing based on leverage ratios
- Reduced interest rate margin on the term loan facility
- Shift to Adjusted Term SOFR pricing, aligning with current market standards
These changes should result in lower borrowing costs and increased financial flexibility for KRG. The improved terms reflect lenders' confidence in the company's creditworthiness and future prospects. For investors, this refinancing is a positive development as it reduces interest expense and extends the debt maturity profile, potentially improving the company's cash flow and reducing refinancing risk in the near term.
However, it's important to note that while the terms are more favorable, the company still carries significant debt. Investors should monitor KRG's leverage ratios and ability to maintain strong occupancy rates in its retail portfolio, especially given the challenges facing brick-and-mortar retail in the evolving market landscape.
Kite Realty Group's refinancing move underscores the strength of its portfolio and market position. As a REIT focused on open-air shopping centers and mixed-use assets, primarily in high-growth Sun Belt markets, KRG is well-positioned in the current retail real estate landscape.
The company's emphasis on grocery-anchored centers provides stability, as these properties have proven resilient even during economic downturns. The mix of necessity-based retail and vibrant mixed-use assets is attractive to both retailers and consumers, which bodes well for long-term occupancy and rental growth.
With a portfolio of 178 properties totaling 27.6 million square feet of gross leasable space, KRG has significant scale and diversification. The refinancing enhances its ability to optimize this portfolio through strategic investments, developments and redevelopments.
For investors, this refinancing demonstrates management's proactive approach to capital management. It also provides KRG with increased financial flexibility to pursue growth opportunities or weather potential market volatility. However, investors should keep an eye on the broader trends in retail real estate, including the impact of e-commerce and changing consumer behaviors, which could affect the long-term value proposition of KRG's portfolio.
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
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
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?
How has the interest rate changed for KRG's term loan facility?
What is the Leverage Toggle introduced in KRG's credit facilities?
How many properties does KRG own as of June 30, 2024?
