Kite Realty plans $300M exchangeable senior notes offering

Kite Realty Group (NYSE: KRG) announced that its operating partnership, Kite Realty Group, L.P., launched a private offering of $300 million in exchangeable senior notes due 2032, according to a press release. The notes are being offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

The operating partnership also intends to grant initial purchasers an option to buy up to an additional $45 million in aggregate principal amount of the notes. The notes will be senior unsecured obligations, with interest payable semi-annually. Terms including the interest rate and exchange rate will be set at pricing.

The notes are exchangeable into cash up to the principal amount, with any excess payable in cash, common shares of the company, or a combination of both.

Kite Realty said it plans to use a portion of the net proceeds to fund capped call transactions intended to reduce potential dilution to common shares. The remaining proceeds, combined with proceeds from recent asset dispositions, are intended to repurchase up to approximately $30 million of the company's common shares and to repay or redeem all $300 million of its 4.00% senior unsecured notes due 2026.

In connection with the capped call transactions, option counterparties are expected to purchase common shares or enter into derivative transactions around the time of pricing, which could influence the market price of the shares or the notes.

The notes and any common shares issuable upon exchange have not been registered under the Securities Act or state securities laws and may not be offered or sold in the United States without registration or an applicable exemption.

Kite Realty Group is a real estate investment trust that owned interests in 169 U.S. open-air shopping centers and mixed-use assets, comprising approximately 27.3 million square feet of gross leasable space, as of March 31, 2026.

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