Item 8.01.
Other Events.
On September 15, 2016, Kite Realty Group, L.P. (the Operating Partnership), the operating partnership of Kite Realty Group Trust (the Company), priced an offering (the Offering) of $300 million aggregate principal amount of 4.000% Senior Notes due 2026 (the Notes). The Notes will be issued at 99.599% of par value with a 4.000% coupon. Interest on the Notes is payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2017. The Notes will mature on October 1, 2026. The Offering is currently expected to close on September 26, 2016, subject to customary closing conditions.
The Operating Partnership intends to use $200 million of the net proceeds from the Offering to pay off its $200 million term loan maturing July 1, 2019 (or January 1, 2020 if the six-month extension option was exercised). The Operating Partnership intends to use the remaining net proceeds for
general corporate purposes, which may include the repayment of amounts outstanding under its unsecured revolving credit facility and other outstanding indebtedness, acquisitions of additional properties, capital expenditures, the expansion, redevelopment and/or improvement of properties in its portfolio, working capital and other general purposes.
In connection with the Offering, the Operating Partnership entered into an Underwriting Agreement (the Underwriting Agreement) with U.S. Bancorp Investments, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, 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 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.
The Offering of the Notes was made pursuant to a shelf registration statement on Form S-3 (File No. 333-202666-01), which became effective upon filing with the Securities and Exchange Commission (the SEC) on March 11, 2015. A prospectus supplement, dated September 15, 2016, relating to the Notes and supplementing the prospectus dated March 11, 2015 was filed with the SEC on September 16, 2016.