Kite Realty to Merge With RPAI
July 22, 2021
Cleary Gottlieb is representing BofA Securities Inc. as financial advisor to Kite Realty Group Trust (Kite Realty) in its merger with Retail Properties of America Inc. (RPAI) in a stock-for-stock transaction.
Under the terms of the agreement, each RPAI common share will be converted into 0.623 newly issued KRG common shares, representing a 13% premium to RPAI’s closing stock price on July 16, 2021. Following the closing of the transaction, KRG shareholders are expected to own approximately 40% of the combined company’s equity and RPAI shareholders are expected to own approximately 60%. KRG anticipates assuming all of RPAI’s debt and has obtained a financing commitment to provide a $1.1 billion term loan bridge facility in the event certain debt consents cannot be obtained prior to the closing of the transaction.
The transaction is expected to close during the fourth quarter of 2021, subject to customary closing conditions, including the approval of both KRG and RPAI shareholders.
Kite Realty is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences.
RPAI is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component.