Kite Realty Group Trust Secures New Credit Facility

TL;DR

KRG just locked down a new credit line, potentially boosting their war chest.

AI Summary

On August 13, 2024, Kite Realty Group Trust entered into a Material Definitive Agreement related to a new credit facility. This agreement creates a direct financial obligation for the registrant, indicating a new source of funding or debt.

Why It Matters

This filing indicates Kite Realty Group Trust has secured new financing, which could impact its ability to fund operations, acquisitions, or development projects.

Risk Assessment

Risk Level: low — The filing details a standard financing agreement, which is a common occurrence for real estate investment trusts and does not inherently signal distress.

Key Players & Entities

• Kite Realty Group Trust (company) — Registrant
• Kite Realty Group, L.P. (company) — Related Entity
• August 13, 2024 (date) — Date of Agreement

FAQ

Key Financial Figures

• $0.01 — e on which registered Common Shares, $0.01 par value per share KRG New York Stoc
• $350 million — ed the previously announced offering of $350 million aggregate principal amount of 4.950% Se
• $350 m — gregate principal amount outstanding of $350 million, and for general corporate purpos

Filing Documents

• tm2421309d5_8k.htm (8-K) — 54KB
• tm2421309d5_ex4-2.htm (EX-4.2) — 133KB
• tm2421309d5_ex5-1.htm (EX-5.1) — 16KB
• tm2421309d5_ex99-1.htm (EX-99.1) — 243KB
• tm2421309d5_ex5-1img001.gif (GRAPHIC) — 3KB
• 0001104659-24-090111.txt ( ) — 761KB
• krg-20240813.xsd (EX-101.SCH) — 3KB
• krg-20240813_def.xml (EX-101.DEF) — 26KB
• krg-20240813_lab.xml (EX-101.LAB) — 35KB
• krg-20240813_pre.xml (EX-101.PRE) — 24KB
• tm2421309d5_8k_htm.xml (XML) — 7KB

01

Item 1.01. Entry into a Material Definitive Agreement. On August 15, 2024, Kite Realty Group, L.P. (the "Operating Partnership"), the operating partnership of Kite Realty Group Trust (the "Company"), completed the previously announced offering of $350 million aggregate principal amount of 4.950% Senior Notes due 2031 (the "Notes"). The issuance of the Notes is pursuant to an Indenture, dated September 26, 2016 (the "Base Indenture"), between the Operating Partnership, as issuer, and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (the "Trustee"), as supplemented by the Third Supplemental Indenture, dated August 15, 2024 (the "Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), among the Operating Partnership, the Company, as possible future guarantor, and the Trustee. The Notes bear interest at a rate of 4.950% per annum accruing from August 15, 2024. Interest on the Notes is payable semi-annually on June 15 and December 15 of each year, beginning on December 15, 2024. The Notes will mature on December 15, 2031. The Notes are the Operating Partnership's unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership's existing and future unsecured and unsubordinated indebtedness. The Notes are not guaranteed by any subsidiary of the Company and will not initially, and may never, be guaranteed by the Company. However, under limited circumstances provided in the Supplemental Indenture, the Company will be required to guarantee the payment of principal of and premium, if any, and interest on the Notes when due if, and for so long as, the Company guarantees the Operating Partnership's obligations under its existing credit agreement. The Operating Partnership may redeem the Notes at its option prior to October 15, 2031 (two (2) months prior to the maturity date) (the "Par Call Date") in whole or in part, at any time

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of the Registrant. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.

01

Item 8.01. Other Events. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 8.01. In connection with the offering of the Notes, the Operating Partnership entered into an Underwriting Agreement (the "Underwriting Agreement") with Wells Fargo Securities, LLC, BofA Securities, Inc., and U.S. Bancorp Investments, Inc., as representatives of the several underwriters named therein (the "Underwriters"). The Underwriting Agreement contains customary representations, warranties and covenants by the Operating Partnership, customary conditions to closing, other obligations of the parties and termination provisions. Additionally, the Operating Partnership has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the "Securities Act"), or to contribute to payments the Underwriters may be required to make because of any of those liabilities. The Operating Partnership intends to use the net proceeds from the offering of the Notes to repay its 4.00% Senior Notes, due March 15, 2025, with an aggregate principal amount outstanding of $350 million, and for general corporate purposes. The foregoing description is a summary of the Underwriting Agreement and does not purport to be a complete statement of the parties' rights and obligations thereunder. The foregoing description is qualified in its entirety by reference to the full text of the Underwriting Agreement, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 4.1 Indenture, dated September 26, 2016, between Kite Realty Group, L.P., as issuer, and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Kite Realty Group Trust and Kite Realty Group, L.P. filed with the SEC on September 27, 2016) 4.2 Third Supplemental Indenture, dated August 15, 2024, among Kite Realty Group, L.P., as issuer, Kite Realty Group Trust, as possible future guarantor, and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee 4.3 Form of Global Note representing the Notes (included in Exhibit 4.2) 5.1 Opinion of Hogan Lovells US LLP 23.1 Consent of Hogan Lovells US LLP (included in Exhibit 5.1) 99.1 Underwriting Agreement, dated August 13, 2024, by and among Kite Realty Group, L.P. and Wells Fargo Securities, LLC, BofA Securities, Inc., and U.S. Bancorp Investments, Inc. as representatives of the several underwriters listed on Schedule 1 attached thereto 104 Cover Page Interactive Data File (embedded with the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. KITE REALTY GROUP TRUST Date: August 15, 2024 By: /s/ Heath R. Fear Heath R. Fear Executive Vice President and Chief Financial Officer KITE REALTY GROUP, L.P. By: Kite Realty Group Trust, its sole general partner Date: August 15, 2024 By: /s/ Heath R. Fear Heath R. Fear Executive Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR