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Kite Realty Group Trust Announces Closing of Overallotment Option in 8.25% Series a Cumulative Redeemable Perpetual Preferred S

^{Published on 2010-12-28 13:10:47 - Market Wire}
 

INDIANAPOLIS--([ BUSINESS WIRE ])--Kite Realty Group Trust (NYSE: KRG) today announced that it has closed the sale of an additional 200,000 of its 8.25% Series A Cumulative Redeemable Perpetual Preferred Shares pursuant to the exercise by the underwriters of their overallotment option. The overallotment option was granted to the underwriters in connection with the Company's previously announced underwritten public offering of 2,600,000 of its 8.25% Series A Preferred Shares, which closed on December 7, 2010. The joint book-running managers for this offering were Citi and Raymond James, the joint lead managers were KeyBanc Capital Markets and RBC Capital Markets, and the co-managers were BMO Capital Markets, RBS and Janney Montgomery Scott.

The Company estimates that the total net proceeds from the Series A Preferred Share offering, including the 200,000 shares pursuant to the overallotment option exercise, will be approximately $67.5 million, after deducting the underwriting discount and estimated offering expenses payable by the Company.

The Company used a portion of the net proceeds from this offering to repay in full its unsecured Term Loan which had an outstanding balance of $55 million. The Company intends to use the remaining net proceeds initially to repay borrowings under its revolving credit facility, which funds ultimately may be used for working capital and general corporate purposes, including, without limitation, the acquisition of properties.

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 was 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 U.S. 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 economic challenges; 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 (particularly its indebtedness coming due in 2011); 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 the Companya™s properties in Indiana, Florida and Texas; 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 aRisk 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, whether as a result of new information, future events or otherwise.