Kite Realty Group Prices $300M 3.25% Notes Due 2032 with 22.5% Premium
KRG•Kite Realty Group’s operating partnership priced $300 million 3.25% exchangeable senior notes maturing April 15, 2032 with a $45 million option and an exchange rate of 28.2466 shares per $1,000 principal (≈$35.40/share), implying a 22.5% premium. Net proceeds of ~$291.8 million will repurchase $30 million shares and redeem $300 million 4.00% notes.
1. Offering Details
On June 29, 2026, Kite Realty Group’s operating partnership launched a private placement of $300 million aggregate principal amount of 3.25% exchangeable senior notes due April 15, 2032. The Offering includes an option for initial purchasers to acquire an additional $45 million of notes, with interest payable semi-annually on April 15 and October 15 starting April 15, 2027.
2. Exchange and Redemption Features
The notes are exchangeable prior to January 15, 2032 upon specified events and at any time thereafter at the holders’ option, with an initial exchange rate of 28.2466 common shares per $1,000 principal—equating to an exchange price of approximately $35.40 per share. Kite Realty Group may redeem the notes on or after July 20, 2029 if the share price exceeds 130% of the exchange price for specified trading periods, and may also redeem to preserve REIT status or if outstanding notes fall below 10% of the original issuance.
3. Use of Proceeds and Capped Calls
The operating partnership expects net proceeds of approximately $291.8 million (or $335.7 million if the option is exercised) after discounts and expenses. It plans to use funds to enter capped call transactions—initially capped at $41.91 (45% premium)—repurchase $30 million of common shares and redeem all $300 million of its 4.00% senior unsecured notes due 2026 at or before maturity.
