Loan & DebtJul 2, 2026, 04:38 PM
Kite Realty Group Issues $345M 3.25% Exchangeable Senior Notes Due 2032
AI Summary
Kite Realty Group's operating partnership, Kite Realty Group, L.P., has closed an offering of $345 million aggregate principal amount of 3.25% Exchangeable Senior Notes due 2032. The notes, which include a fully exercised $45 million over-allotment option, will mature on April 15, 2032, and bear interest at 3.25% annually. The net proceeds of approximately $335.7 million will be used to enter into capped call transactions, repurchase $30 million of the company's common shares, and repay $300 million of existing 4.00% senior unsecured notes due 2026.
Key Highlights
- Kite Realty Group, L.P. issued $345 million aggregate principal amount of 3.25% Exchangeable Senior Notes due 2032.
- The notes include $45 million from the full exercise of the initial purchasers' over-allotment option.
- The notes mature on April 15, 2032, and accrue interest semi-annually at 3.25% per year.
- Initial exchange rate is 28.2466 Common Shares per $1,000 principal amount, equivalent to $35.40 per share.
- Net proceeds from the offering were approximately $335.7 million.
- Proceeds will be used for capped call transactions, repurchasing $30 million of common shares, and repaying $300 million of 4.00% senior unsecured notes due 2026.
- Capped call transactions were entered into to reduce potential share dilution, with a cap price of $41.91.
Price Impact
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