Kimco Realty Corp. priced an offering of $500 million of notes due Feb. 1, 2025, and $350 million of notes due Sept. 1, 2047.
The 2025 and 2047 notes were priced at respective annual coupon rates of 3.300% and 4.450%, with effective yields of 3.324% and 4.495%, respectively.
The net proceeds may be used in part to fund the consideration for Kimco's cash tender offer for its 4.30% series E medium-term notes due 2018. Any remaining funds will go toward general corporate purposes, including to partially trim borrowings under the company's revolving credit facility due in March 2021, with two six-month extension options.
Kimco expects to settle the offering Aug. 10.
Citigroup Global Markets Inc., Merrill Lynch Pierce Fenner & Smith Inc., RBC Capital Markets LLC, Wells Fargo Securities LLC, Jefferies LLC, Mizuho Securities USA LLC and Morgan Stanley & Co. LLC were the joint book-running managers for the 2025 notes, with BB&T Capital Markets and SunTrust Robinson Humphrey Inc. serving as senior co-managers. Barclays Capital Inc., BNY Mellon Capital Markets LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Regions Securities LLC and U.S. Bancorp Investments Inc. were the co-managers.
For the 2047 notes, Citigroup Global, Merrill Lynch, RBC Capital, Wells Fargo Securities, TD Securities (USA) LLC, UBS Securities LLC and U.S. Bancorp were the joint book-running managers, while Regions Securities LLC and Scotia Capital (USA) Inc. were the senior co-managers. Barclays Capital, BB&T Capital, BNY Mellon, CIBC World Markets Corp., Deutsche Bank Securities and J.P. Morgan Securities were the co-managers.