Kimco Realty prices upsized $230 million preferreds; Vornado Realty Trust edges lower

By Cristal Cody

Tupelo, Miss., Dec. 11 – Kimco Realty Corp. priced an upsized $230 million of 5.25% $25-par class M cumulative redeemable preferred shares on Monday.

The deal was upsized from $150 million, a source said.

The 5.25% perpetual preferreds were initially talked to price in the 5.25% to 5.3% area.

Kimco’s preferreds were freed to trade over the counter under temporary symbol “KMCCP.”

In new issue trading, Vornado Realty Trust’s new 5.25% split-rated series M cumulative redeemable perpetual preferred stock fell 4 cents to close at $24.78.

The preferreds were quoted on Friday at $24.76 bid, $24.82 offered in the secondary market.

Vornado Realty Trust sold $300 million of the $25-par preferreds (Baa3/BBB-/BB+) on Dec. 4.

The preferreds are trading over the counter under temporary symbol “VNNDP.”

Overall, preferred stocks softened.

The Wells Fargo Hybrid and Preferred Securities index closed off 14 basis points.

The U.S. iShares Preferred Stock ETF ended down 8 bps.

In its deal, Kimco Realty sold 9.2 million depositary shares in the $230 million offering of 5.25% $25-par class M cumulative redeemable preferred shares (Baa2/BBB-/BBB-) on Monday.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.

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