Kite Realty Group increases its term loan agreement to $230 million

By Tali David

Minneapolis, Aug. 27 - Kite Realty Group Trust, Kite Realty Group, LP and several subsidiaries entered into the second amendment to their existing term loan agreement on Aug. 21, according to an 8-K filed with the Securities and Exchange Commission.

The amended term loan agreement has a maturity date of Aug. 21, 2018 and may be extended by six months, at Kite Realty Group, LP's option, to Feb. 21, 2019.

According to the filing, the amended agreement increased the term loan to $230 million from $125 million. The $105 million of additional proceeds, which were drawn on Aug. 21, will primarily be used to pay down amounts outstanding under the company's unsecured revolving credit facility.

Borrowings under the amended term loan agreement will bear interest at a rate of Libor plus 145 basis points to 245 bps, depending on Kite Realty Group, LP's leverage ratio, a decrease from the rate of Libor plus 210 bps to 310 bps under the existing term loan agreement. This interest rate is subject to decrease in the event that Kite Realty Group Trust or Kite Realty Group, LP receives an investment-grade rating from one of the major credit rating agencies, the filing said.

KeyBank NA is the administrative agent.

Kite Realty is an Indianapolis-based real estate investment trust focused on neighborhood and community shopping centers.

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