Kite Realty Group Trust (NYSE:KRG) (the “Company”) announced today that it has priced its underwritten public offering of 32,000,000 of its common shares of beneficial interest (“Common Shares”) at a public offering price of $6.16 per share. The underwriters have been granted a 30-day option to purchase up to an additional 4,800,000 Common Shares. 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 $188.9 million, or approximately $217.3 million if the underwriters’ option to purchase additional Common Shares is exercised in full.
The Company intends to use the net proceeds from this offering initially to repay approximately $64.2 million of outstanding indebtedness under the Company’s unsecured revolving credit facility and the remainder to fund a portion of the purchase price of the previously announced acquisition of a portfolio of nine retail properties from an institutional seller (the “Portfolio Acquisition”) and related transaction expenses. Such net proceeds that initially are used to repay outstanding indebtedness under the unsecured revolving credit facility are expected to be redeployed to fund a portion of the purchase price of the Portfolio Acquisition and related transaction expenses. Any remaining proceeds will be used for general corporate purposes, the acquisition and development of properties, other opportunistic investments and the repayment of debt.
The offering, which is subject to customary closing conditions, is expected to close on or about November 13, 2013.
BofA Merrill Lynch, KeyBanc Capital Markets, Barclays and Wells Fargo Securities are serving as the joint book-running managers for this offering. Citigroup, Evercore, J.P. Morgan and Raymond James are serving as the senior co-managers for this offering and Huntington and Janney Montgomery Scott are serving as the co-managers for this offering.The offering is being made pursuant to a shelf registration statement filed with the Securities and Exchange Commission, which became effective on January 11, 2012. A preliminary prospectus supplement relating to the offering has been filed with the Securities and Exchange Commission.