Published on 3/22/2017 in the Prospect News Investment Grade Daily.
New Issue: Kimco Realty prices $400 million 3.8% 10-year notes at 145 bps spread
By Cristal Cody
Tupelo, Miss., March 22 – Kimco Realty Corp. sold $400 million of 3.8% 10-year senior notes (Baa1/BBB+/BBB+) on Wednesday at 99.637 to yield 3.844%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 145 basis points.
The bookrunners were Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.
Proceeds will be used for general corporate purposes, specifically to pre-fund 2017 debt maturities, including $414 million of mortgage debt with a weighted average interest rate of 5.49%, and to partially reduce $420 million of borrowings under the company’s revolving credit facility maturing in March 2021.
Kimco is a New Hyde Park, N.Y., real estate investment trust that owns and operates neighborhood and community shopping centers.
| Issuer: | Kimco Realty Corp.
|
| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | April 1, 2027
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | Mizuho Securities USA Inc. and TD Securities (USA) LLC
|
| Co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., PNC Capital Markets LLC, Regions Securities LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and UBS Securities LLC
|
| Coupon: | 3.8%
|
| Price: | 99.637
|
| Yield: | 3.844%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Jan. 1, 2027 at price equal to par and Treasuries plus 25 bps; thereafter at par
|
| Trade date: | March 22
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
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