Published on 11/1/2016 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty prices $750 million of notes in two tranches
By Cristal Cody
Eureka Springs, Ark., Nov. 1 – Kimco Realty Corp. sold $750 million of notes (Baa1/BBB+) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $400 million 2.7% notes due March 1, 2024 at 99.489 to yield 2.778%, or 117 basis points over Treasuries.
Kimco Realty sold $350 million of 4.125% notes due Dec. 1, 2046 at 99.213 to yield 4.171%, or Treasuries plus 160 bps.
Citigroup Global Markets Inc., BofA Merrill Lynch, RBC Capital Markets LLC, Wells Fargo Securities LLC, Jefferies LLC, UBS Securities LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including to repay up to $400 million of a $650 million term loan due in January 2017 and to pre-fund 2017 debt maturities.
Kimco Realty is a New York-based publicly traded owner and operator of open-air shopping centers.
| Issuer: | Kimco Realty Corp.
|
| Amount: | $750 million
|
| Description: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, RBC Capital Markets LLC, Wells Fargo Securities LLC, Jefferies LLC, UBS Securities LLC, U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Barclays, SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | BBVA Securities Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Eight-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2024
|
| Coupon: | 2.7%
|
| Price: | 99.489
|
| Yield: | 2.778%
|
| Spread: | Treasuries plus 117 bps
|
| Call feature: | Make-whole call before Jan. 1, 2024 at price equal to sum of par and Treasuries plus 20 bps; on or after Jan. 1, 2024 at par
|
|
|
| 30-year notes
|
| Amount: | $350 million
|
| Maturity: | Dec. 1, 2046
|
| Coupon: | 4.125%
|
| Price: | 99.213
|
| Yield: | 4.171%
|
| Spread: | Treasuries plus 160 bps
|
| Call feature: | Make-whole call before June 1, 2046 at price equal to sum of par and Treasuries plus 25 bps; on or after June 1, 2046 at par
|
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