Kimco Realty Corp. is offering 9.2 million depositary shares, each representing a 0.001 interest in the company's 5.25% class M cumulative redeemable preferred stock, for a total price of $230 million.
The company priced the depositary shares at $25.00 apiece. Holders of each depositary share are entitled to a 5.25% cumulative dividend, or $1.3125 per annum, which the company may opt to redeem at par on and after Dec. 20, 2022.
Kimco aims to use the net proceeds to fund development and redevelopment costs, to potentially redeem other classes of its preferred stock with a $575 million aggregate liquidation preference and to reduce outstanding debt, among other general corporate purposes.
Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets LLC were the joint book-running managers, while Barclays Capital Inc., BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc. and Mizuho Securities USA LLC were the co-managers for the offering, which is expected to settle Dec. 20.
