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Kite Realty Group Trust Announces Pricing of Series A Cumulative Redeemable Perpetual Preferred Share Offering

^{Published on 2010-11-30 11:21:10 - Market Wire}
 

INDIANAPOLIS--([ BUSINESS WIRE ])--Kite Realty Group Trust (NYSE: KRG) today announced that it has priced, in an underwritten public offering, 2.6 million of its 8.25% Series A Cumulative Redeemable Perpetual Preferred Shares with a liquidation preference of $25 per share. Dividends for the Series A Preferred Shares will be cumulative from the date of original issuance and payable quarterly on or about the first day of each March, June, September and December, beginning on March 1, 2011, at a rate of 8.25% per annum of their liquidation preference, which is equivalent to $2.0625 per annum per share. The joint book-running managers for this offering are Citi and Raymond James, the joint lead managers are KeyBanc Capital Markets and RBC Capital Markets, and the co-managers are BMO Capital Markets, RBS and Janney Montgomery Scott. The underwriters have been granted a 30-day option to purchase up to an additional 390,000 Series A Preferred Shares to cover overallotments, if any.

The Company estimates that the net proceeds from this offering, after deducting the underwriting discount and estimated offering expenses payable by the Company, will be approximately $62.7 million or approximately $72.1 million if the underwritersa™ overallotment option is exercised in full. The offering is expected to close on or about December 7, 2010, subject to customary closing conditions.

The Company intends to use a portion of the net proceeds from this offering to repay in full its unsecured Term Loan. The Company intends to use the remaining net proceeds for working capital and general corporate purposes, including, without limitation, the acquisition of properties and to repay borrowings under its revolving credit facility.

A shelf registration statement with respect to this offering was previously filed with the Securities and Exchange Commission and declared effective on December 10, 2008. A prospectus supplement relating to the offering has been filed with the Securities and Exchange Commission.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement. Copies of the prospectus supplement and the accompanying prospectus relating to these securities may be obtained from Citi, Brooklyn Army Terminal, 140 58th Street, Brooklyn, NY 11220, (877) 858-5407; or from Raymond James, 880 Carillon Parkway, St. Petersburg, FL 33716, (800) 248-8863.

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. The Company owns interests in a portfolio of operating retail properties, retail properties under development and operating commercial properties.

Safe Harbor

This press release contains certain statements that are not historical fact and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including, without limitation: national and local economic, business, real estate and other market conditions, particularly in light of the current recession; financing risks, including the availability of and costs associated with sources of liquidity; the Companya™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 and joint venture risks; property ownership and management risks; the Companya™s ability to maintain its status as a real estate investment trust (aREITa) 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 Indiana, Florida and Texas; and other factors affecting the real estate industry generally. The Company refers you the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled aBusiness Risk Factorsa in the Companya™s Annual Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that could adversely affect the Companya™s results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.