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.
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 BofA Merrill Lynch, 222 Broadway, New York, New York 10038, Attn: Prospectus Department, or by email at email@example.com; or from KeyBanc Capital Markets, Attention: Prospectus Delivery Department, 127 Public Square, 4th Floor, Cleveland, Ohio 44114, or by calling (800) 859-1783; or from Barclays, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Barclaysprospectus@broadridge.com, or by calling (888) 603-5847; or from Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York, 10152, at (800) 326-5897 or by emailing a request to firstname.lastname@example.org.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. At September 30, 2013, the Company owned interests in a portfolio of 62 operating and redevelopment properties totaling approximately 9.5 million square feet and three properties currently under development totaling 1.2 million square feet. Safe Harbor This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: national and local economic, business, real estate and other market conditions, particularly in light of low growth in the U.S. economy, financing risks, including the availability of and costs associated with sources of liquidity, the Company’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 (including the consummation and impact of the Portfolio Acquisition (as defined herein) and financing thereof, and the Company’s ability to complete the Portfolio Acquisition and successfully integrate the operations of the acquired properties in the timeframe and on the terms described herein), property ownership and management risks, the Company’s ability to maintain its status as a real estate investment trust 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, the dilutive effects of this offering and of issuing additional securities, 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 “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, which discuss these and other factors that could adversely affect the Company’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.