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Kite Realty Group Trust Increases Unsecured Revolving Credit Facility To $500M From $200M

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Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today that it entered into an Amended and Restated Credit Agreement, consolidating and restating its unsecured revolving credit and unsecured term loan credit facilities in connection with the closing of its merger with Inland Diversified Real Estate Trust, Inc. The major terms of the amended facilities include the following:

Unsecured Revolving Credit Facility

borrowing capacity increased from $200 million to $500 million;
interest rate reduced from LIBOR plus 165 to 250 basis points to LIBOR plus 140 to 200 basis points, depending on the Company's leverage ratio;
maturity date extended sixteen months to July 1, 2018 with options to further extend to July 1, 2019; and
$250 million expansion feature, subject to certain conditions including obtaining commitments from any one or more lenders, whether or not currently party to the Amended and Restated Credit Agreement, to provide such increased amounts.
Unsecured Term Loan Credit Facility

principal amount of the term loan remains at $230 million;
interest rate reduced from LIBOR plus 145 to 245 basis points to LIBOR plus 135 to 190 basis points, depending on the Company's leverage ratio;
maturity date extended ten months to July 1, 2019 with option to further extend to January 1, 2020; and
$170 million expansion feature, subject to certain conditions including obtaining commitments from any one or more lenders, whether or not currently party to the Amended and Restated Credit Agreement, to provide such increased amounts.
Daniel R. Sink, the Company's Executive Vice President and Chief Financial Officer, said, “Our recent merger and acquisition activity have significantly increased the size and quality of our unencumbered asset pool as we continue to transform to an unsecured balance sheet. The terms of the amended and restated credit facilities will provide the Company with greater financial flexibility, increased borrowing capacity, and lower pricing. We appreciate the long relationship and continued support we have enjoyed with the banks involved in our credit facilities.”

The Company's bank group for the amended $500 million Unsecured Revolving Credit Facility is led by KeyBank National Association, as Administrative Agent, and Bank of America, N.A., as Syndication Agent, Wells Fargo Bank, National Association and U.S. Bank National Association, as Co-Documentation Agents, and KeyBanc Capital Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Co-Lead Arrangers. Other banks in the syndicate include JPMorgan Chase Bank, N.A.; Citibank, N.A.; Raymond James Bank, N.A.; The Huntington National Bank; Fifth Third Bank; Regions Bank; Barclays Bank PLC; Capital One, National Association; PNC Bank, National Association; SunTrust Bank; and Associated Bank National Association.

The Company's bank group for the amended $230 million Unsecured Term Loan Credit Facility is led by KeyBank National Association, as Administrative Agent, and Wells Fargo Bank, National Association, as Syndication Agent, JPMorgan Chase Bank, N.A. and Bank of America, N.A., as Co-Documentation Agents, and KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC, as Co-Lead Arrangers. Other banks in the syndicate include JPMorgan Chase Bank, N.A.; Raymond James Bank, N.A.; The Huntington National Bank; Fifth Third Bank; Regions Bank; and SunTrust Bank.

Posted-In: News Financing Press Releases

 

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