Published on 8/10/2020 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty prices upsized $400 million of 1.9% notes due 2028 at 155 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 10 – Kimco Realty Corp. priced an upsized $400 million of 1.9% notes due March 1, 2028 (Baa1/BBB+) on Monday at 99.554 to yield 1.964%, or a spread of Treasuries plus 155 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Initial price talk was in the 180 bps spread area.
The deal was upsized from $300 million.
BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to redeem all of Kimco Realty’s outstanding 3.2% notes due May 2021.
The New Hyde Park, N.Y.-based real estate investment trust owns and operates neighborhood and community shopping centers.
| Issuer: | Kimco Realty Corp.
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| Amount: | $400 million
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| Description: | Notes
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| Maturity: | March 1, 2028
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC
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| Senior co-managers: | BMO Capital Markets Corp., J.P. Morgan Securities LLC and RBC Capital Markets LLC
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| Co-managers: | Barclays, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, Regions Securities LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities, Inc.
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| Coupon: | 1.9%
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| Price: | 99.554
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| Yield: | 1.964%
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| Spread: | Treasuries plus 155 bps
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| Call features: | Make-whole call before Jan. 1, 2028 at price equal to par plus Treasuries plus 25 bps; thereafter at par
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| Trade date: | Aug. 10
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| Settlement date: | Aug. 24
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 180 bps area
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