Published on 10/7/2015 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty sells upsized $500 million 3.4% notes due 2022 at 175 bps over Treasuries
By Aleesia Forni
Virginia Beach, Oct. 7 – Kimco Realty Corp. sold an upsized $500 million issue of 3.4% senior notes (Baa1/BBB+) due 2022 on Wednesday at 175 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.319 to yield 3.51%.
Guidance was set in the 180 bps area over Treasuries following talk set in the Treasuries plus 195 bps to 200 bps range.
The deal was upsized from $350 million.
Bookrunners are Citigroup Global Markets Inc., RBC Capital Markets LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including the pre-funding of near-term maturities and to partially reduce borrowings under its revolving credit facility.
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: | Nov. 1, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., RBC Capital Markets LLC, Wells Fargo Securities, LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Senior co-managers: | J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | Barclays, BNY Mellon Capital Markets, LLC, Deutsche Bank Securities Inc., PNC Capital Markets LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC
|
| Coupon: | 3.4%
|
| Price: | 99.319
|
| Yield: | 3.51%
|
| Spread: | Treasuries plus 175 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 1, 2022, then callable at par
|
| Trade date: | Oct. 7
|
| Settlement date: | Oct. 19
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 180 bps area, tightened from Treasuries plus 195 bps to 200 bps
|
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