By Andrea Heisinger and Stephanie N. Rotondo
New York, July 16 - Kimco Realty Corp. sold an upsized $225 million of 5.5% class J cumulative redeemable preferred stock on Monday at par of $25, according to an FWP filing with the Securities and Exchange Commission.
The size of the sale was increased from the minimum of $150 million, a source said. There is no over-allotment option.
A trader said price talk was 5.625% to 5.75%. It was then revised to 5.5% to 5.625%, and the issue priced at the tight end of that range.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
The joint lead managers were J.P. Morgan Securities LLC and RBC Capital Markets LLC.
The co-managers were Raymond James & Associates, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNY Mellon Capital Markets, LLC, Piper Jaffray & Co. and Scotia Capital (USA) Inc.
The preferreds (expected Baa2/BBB-/BBB-) have a liquidation preference of $25,000 each. The securities will be issued as $25 depositary shares each representing a 1/1,000th interest in a preferred.
Dividends will be payable quarterly on the 15th day of January, April, July and October.
The preferred stock can be redeemed on or after July 25, 2017 at par plus accrued dividends. There is no stated maturity.
Ownership will be restricted to 9.8% of the outstanding preferreds.
Kimco will apply to list the new series of preferreds on the New York Stock Exchange.
Proceeds will be used to redeem the company's class F preferreds on or about Aug. 15 and for general corporate purposes.
Kimco is a New Hyde Park, N.Y.-based real estate investment trust.
| Issuer: | Kimco Realty Corp.
|
| Issue: | Class J cumulative redeemable preferred stock
|
| Amount: | $225 million (9 million shares), upsized from $150 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Joint lead managers: | J.P. Morgan Securities LLC, RBC Capital Markets LLC
|
| Co-managers: | Raymond James & Associates, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNY Mellon Capital Markets, LLC, Piper Jaffray & Co., Scotia Capital (USA) Inc.
|
| Dividends: | 5.5%
|
| Price: | Par of $25 per depositary share
|
| Call option: | On or after July 25, 2017 at par plus accrued dividends
|
| Trade date: | July 16
|
| Settlement date: | July 25
|
| Expected ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 5.625% to 5.75% (initial), 5.5% to 5.625% (revised)
|
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