Kimco to repay preferreds, revolver with new note offering

By Sarah Lizee

Olympia, Wash., Aug. 7 – Kimco Realty Corp. announced that it may use proceeds from a new note offering to redeem the company’s 6% class I and its 5.5% class J cumulative redeemable preferreds. Kimco may also reduce the debt under its revolving credit facility, according to a 424B5 filing with the Securities and Exchange Commission.

The company said it may redeem the 6% class I cumulative redeemable preferred stock that became callable on March 20, and the 5.5% class J cumulative redeemable preferred stock that became callable on July 25.

The proceeds will also be used to reduce the company’s outstanding debt under its revolving credit facility maturing in March 2021. The borrowings bear interest at a rate of one-month Libor plus 87.5 basis points, equivalent to 2.1% as of June 30.

The company also plans to use the proceeds for the funding of development and redevelopment costs.

Kimco is a New Hyde Park, N.Y., real estate investment trust that owns and operates neighborhood and community shopping centers.

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