Published on 8/9/2016 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty prices $500 million 2.8% 10-year notes at 135 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., Aug. 9 – Kimco Realty Corp. priced $500 million of 2.8% 10-year notes on Tuesday at 99.169 to yield 2.895%, according to an FWP filing with the Securities and Exchange Commission.
The notes due Oct. 1, 2026 (Baa1/BBB+) priced with a spread of 135 basis points over Treasuries.
Barclays, J.P. Morgan Securities LLC, UBS Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to fund the previously announced redemption of $290.9 million of outstanding 5.7% senior notes due May 1, 2017. Any remaining proceeds will be used for general corporate purposes, including to pre-fund 2017 debt maturities, including $137.2 million outstanding of 6.32% mortgage debt.
Kimco is a real estate investment trust for shopping centers and is based in New Hyde Park, N.Y.
| Issuer: | Kimco Realty Corp.
|
| Amount: | $500 million
|
| Description: | Notes
|
| Maturity: | Oct. 1, 2026
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, UBS Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, Wells Fargo Securities, LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Scotia Capital (USA) Inc.
|
| Co-managers: | BB&T Capital Markets, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.8%
|
| Price: | 99.169
|
| Yield: | 2.895%
|
| Spread: | Treasuries plus 135 bps
|
| Call feature: | Make-whole call before July 1, 2026 at Treasuries plus 20 bps; on or after July 1, 2026 at par
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 18
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
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