Kimco Realty Corp. (NYSE:KIM), today announced the sale of
9,200,000 depositary shares, each representing a 1/1000 fractional
interest in a share of the company’s 5.25% Class M Cumulative
Redeemable Preferred Stock, $1.00 par value per share (the
“Preferred Stock”) for a gross issuance price of $230 million. The
company has granted the underwriters a 30-day over-allotment option
to purchase up to an additional 1,380,000 depositary shares.
The depositary shares, priced at $25.00 per depositary share,
entitle holders of each depositary share to a 5.25% cumulative
dividend, or $1.3125 per annum, are not convertible into common
stock and are redeemable at par at the option of the company on and
after December 20, 2022. The offering is expected to settle on
December 20, 2017, subject to the satisfaction of customary closing
conditions.
The company intends to use the net proceeds of the offering for
general corporate purposes including, without limitation, any one
or more of the following: (i) the funding of development and
redevelopment costs; (ii) the potential redemption of other classes
of its preferred stock with an aggregate liquidation preference of
$575 million which are currently callable at its option; and (iii)
the reduction, from time to time, of its outstanding indebtedness,
including borrowings under the company’s revolving credit facility
maturing in March 2021 (subject to two six-month extension
options), which borrowings bear interest at a rate of one-month
LIBOR plus 0.875% (2.10% as of September 30, 2017).
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan
Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities,
LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC served
as joint book-running managers for the offering. Barclays Capital
Inc., BNY Mellon Capital Markets, LLC, Citigroup Global Markets
Inc. and Mizuho Securities USA LLC served as co-managers for the
offering.
The offering was made pursuant to an effective shelf
registration statement, prospectus and related prospectus
supplement. Copies of the prospectus supplement and the base
prospectus, when available, may be obtained by contacting Merrill
Lynch, Pierce, Fenner & Smith Incorporated, NC1-004-03-43, 200
North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attn:
Prospectus Department, Email: dg.prospectus_requests@baml.com;
Morgan Stanley & Co. LLC at 180 Varick Street, 2nd Floor, New
York, New York 10014, Attention: Prospectus Department, telephone
(866) 718-1649 or email at prospectus@morganstanley.com; UBS
Securities LLC at 1285 Avenue of the Americas, New York, NY 10019,
Attention: Prospectus Department, or by calling (888) 827-7275; or
Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000,
Minneapolis, MN 55402, Attn: WFS Customer Service, Toll free
number: 1-800-645-3751, Email: wfscustomerservice@wellsfargo.com.
Investors may also obtain these documents for free by visiting
EDGAR on the Securities and Exchange Commission’s website at
www.sec.gov.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
Preferred Stock or depositary shares in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or other jurisdiction.
About Kimco
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust
(REIT) headquartered in New Hyde Park, N.Y., that is one of the
nation’s largest publicly-traded owners and operators of open-air
shopping centers. As of September 30, 2017, the company owned
interests in 507 U.S. shopping centers comprising 84 million square
feet of gross leasable space primarily concentrated in the top
major metropolitan markets. Publicly traded on the NYSE since 1991,
and included in the S&P 500 Index, the company has specialized
in shopping center acquisitions, development and management for
more than 50 years.
Safe Harbor Statement
The statements in this press release state the company’s and
management’s intentions, beliefs, expectations or projections of
the future and are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. It is
important to note that the company’s actual results could differ
materially from those projected in such forward-looking statements.
Factors which may cause actual results to differ materially from
current expectations include, but are not limited to (i) general
adverse economic and local real estate conditions, (ii) the
inability of major tenants to continue paying their rent
obligations due to bankruptcy, insolvency or a general downturn in
their business, (iii) financing risks, such as the inability to
obtain equity, debt or other sources of financing or refinancing on
favorable terms to the company, (iv) the company’s ability to raise
capital by selling its assets, (v) changes in governmental laws and
regulations, (vi) the level and volatility of interest rates and
foreign currency exchange rates and management’s ability to
estimate the impact thereof, (vii) risks related to the company’s
international operations, (viii) the availability of suitable
acquisition, disposition, development and redevelopment
opportunities, and risks related to acquisitions not performing in
accordance with the company’s expectations, (ix) valuation and
risks related to the company’s joint venture and preferred equity
investments, (x) valuation of marketable securities and other
investments, (xi) increases in operating costs, (xii) changes in
the dividend policy for the company’s common stock, (xiii) the
reduction in the company’s income in the event of multiple lease
terminations by tenants or a failure by multiple tenants to occupy
their premises in a shopping center, (xiv) impairment charges and
(xv) unanticipated changes in the company’s intention or ability to
prepay certain debt prior to maturity and/or hold certain
securities until maturity. Accordingly, there is no assurance that
the company’s expectations will be realized. Additional information
concerning factors that could cause actual results to differ
materially from those forward-looking statements is contained from
time to time in the company’s Securities and Exchange Commission
(“SEC”) filings. Copies of each filing may be obtained from the
company or the SEC.
The company refers you to the documents filed by the company
from time to time with the SEC, specifically the sections titled
“Risk Factors” in the company’s Annual Report on Form 10-K for the
year ended December 31, 2016, as may be updated or supplemented in
the company’s Quarterly Reports on Form 10-Q and the company’s
other filings with the SEC, which discuss these and other factors
that could adversely affect the company’s results. The company
disclaims any intention or obligation to update the forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171211006249/en/
Kimco Realty CorporationDavid F. Bujnicki, 1-866-831-4297Senior
Vice President, Investor Relations and
Strategydbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
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