Published on 4/14/2014 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty sells upsized $500 million 3.2% seven-year notes at 105 bps spread
By Aleesia Forni
Virginia Beach, April 14 - Kimco Realty Corp. sold an upsized $500 million issue of 3.2% seven-year notes (Baa1/BBB+/BBB+) with a spread of Treasuries plus 105 basis points, according to a market source and a FWP filing with the Securities and Exchange Commission.
Pricing was at 99.8 to yield 3.232%.
The bookrunners were Citigroup Global Markets Inc., UBS Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including the repayment of borrowings under the company's revolving credit facility due in October 2018 and the pre-funding of near-term maturities, including the $100 million of 5.95% senior notes due June 2014, $194.6 million of 4.82% senior notes due June 2014 and $97.6 million of mortgage debt maturing in 2014.
The real estate investment trust for neighborhood and community shopping centers is based in New Hyde Park, N.Y.
| Issuer: | Kimco Realty Corp.
|
| Amount: | $500 million, upsized from $350 million
|
| Description: | Senior notes
|
| Maturity: | May 1, 2021
|
| Bookrunners: | Citigroup Global Markets Inc., UBS Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch
|
| Senior co-managers: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets LLC
|
| Co-managers: | Barclays, BB&T Capital Markets, BBVA Securities Inc., Morgan Stanley & Co. LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.2%
|
| Price: | 99.8
|
| Yield: | 3.232%
|
| Spread: | Treasuries plus 105 bps
|
| Trade date: | April 14
|
| Settlement date: | April 24
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | 125 bps to 130 bps over Treasuries
|
| Make-whole call: | Treasuries plus 20 bps prior to March 1, 2021, then callable at par
|
| Distribution: | SEC-registered
|
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