Kite plans to raise $65 million in stock offering

Indianapolis-based Kite Realty Group Trust plans to raise about $65 million by selling 2.6 million shares of preferred stock.

The real estate investment trust said Tuesday it will sell the shares at $25 each. The shares pay an annual return of 8.25 percent.

Kite said it will use the proceeds to repay debt, purchase property and for general corporate purposes.

The offering is expected to close Dec. 7.

Citi and Raymond James will act as joint book-running managers. Lead managers are KeyBanc Capital Markets and RBC Capital Markets.

The underwriters have been granted a 30-day option to purchase an additional 390,000 preferred shares, which could bring proceeds to $72.1 million.

Shares of Kite’s common stock were trading at $5.02 as of late Wednesday morning, unchanged from Tuesday's closing price.