By Stephanie N. Rotondo
Seattle, Aug. 7 – Kimco Realty Corp. priced an upsized $225 million of 5.125% class L cumulative redeemable preferred stock (expected ratings: Baa2/BBB-/BBB-) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The deal came at the tight end of the 5.125% to 5.25% price talk. It was also increased from $150 million.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Dividends will be payable on the 15th day of January, April, July and October. The preferreds become redeemable on Aug. 16, 2022 at par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange.
The New Hyde Park, N.Y.-based real estate investment trust plans to use proceeds for general corporate purposes, including the possible redemption of the company’s 6% class I cumulative redeemable preferreds and the 5.5% class J cumulative redeemable preferreds, the reduction of outstanding debt and the funding of development and redevelopment costs.
| Issuer: | Kimco Realty Corp.
|
| Securities: | Class L cumulative redeemable preferred stock
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| Amount: | $225 million, or 9 million shares
|
| Greenshoe: | $33.75 million, or 1.35 million shares
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| Maturity: | Perpetual
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| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BB&T Capital Markets, BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., Stifel Nicolaus & Co. Inc. and U.S. Bancorp Investments Inc.
|
| Dividend: | 5.125%
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| Price: | Par of $25.00
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| Yield: | 5.125%
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| Talk: | 5.125% to 5.25%
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| Call options: | On or after Aug. 16, 2022 at par plus accrued dividends
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 16
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| Expected ratings: | Moody’s: Baa2
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| S&P: BBB-
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| Fitch: BBB-
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| Expected listing: | NYSE
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| Cusip: | 49446R737
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