Kite Realty Group (NYSE: KRG) announced that its operating partnership, Kite Realty Group, L.P., priced a $300 million offering of 3.25% exchangeable senior notes due 2032 in a private placement to qualified institutional buyers under Rule 144A.

The notes, set to close July 2, 2026, will mature on April 15, 2032, and pay interest semi-annually at 3.25% per year beginning April 15, 2027. The initial purchasers were granted an option to buy up to an additional $45 million in notes.

The exchange rate is set at 28.2466 common shares per $1,000 principal amount, equivalent to an exchange price of approximately $35.40 per share, representing a premium of approximately 22.5% over the June 29, 2026, closing price of $28.90 per share.

Net proceeds are estimated at approximately $291.8 million, or $335.7 million if the additional purchase option is exercised in full. The company plans to use proceeds to fund capped call transactions, repurchase approximately $30 million of its common shares, and repay or redeem its existing $300 million of 4.00% senior unsecured notes due 2026.

In connection with the offering, the operating partnership entered into capped call transactions with certain financial institutions. The cap price was set at approximately $41.91 per share, representing a premium of approximately 45% over the June 29, 2026, closing price. The transactions are intended to reduce potential dilution to common shares upon any exchange of the notes.

The operating partnership may redeem the notes on or after July 20, 2029, if the common share price has been at least 130% of the exchange price for at least 20 trading days in any 30 consecutive trading day period. The notes are senior unsecured obligations of the operating partnership.