Business & Finance
Business and Finance
Business and Finance
Tue, August 24, 2010
Mon, August 23, 2010 Kimco Announces $175 Million 6.90% Perpetual Preferred Stock Offering
NEW HYDE PARK, N.Y.--([ BUSINESS WIRE ])--Kimco Realty Corporation (NYSE: KIM) today announced the offering of 7,000,000 depositary shares, each representing a 1/100 fractional interest in a share of the companya™s 6.90% Class H Cumulative Redeemable Preferred Stock, $1.00 par value per share. These depositary shares, priced at $25.00, entitle holders to a 6.90% cumulative dividend, or $1.725 per annum, are not convertible into common stock and are redeemable at par at the option of the company on and after August 30, 2015. The preferred stock issuance is rated BBB- by both S&P and Fitch with a Baa2 rating by Moody's. The net proceeds received from the offering will be used to repay mortgage loans in the aggregate principal amount of approximately $150 million with interest rates from 6.75% to 7.87% per annum and with maturities from May 2011 to April 2013 and for general corporate purposes.
Banc of America Securities LLC, Morgan Stanley & Co. Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC are the joint book-running managers. Morgan Keegan & Company, Inc., Piper Jaffray & Co., RBC Capital Markets Corporation and Stifel, Nicolaus & Company, Incorporated are the co-managers for the offering.
The offering is expected to be completed on August 30, 2010, and is subject to customary closing conditions.
Copies of the preliminary prospectus supplement and the prospectus supplement relating to the offering may be obtained from (i) Banc of America Securities LLC by phone at 1-800-294-1322, (ii) Morgan Stanley & Co. Incorporated by phone at 1-866-718-1649, (iii) UBS Securities LLC by phone at 1-877-827-6444, or (iv) Wells Fargo Securities, LLC by phone at 1-800-326-5897.
A registration statement relating to these securities became effective upon filing with the Securities and Exchange Commission. 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 these securities in any state or 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 jurisdiction.
About Kimco
Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates North America's largest portfolio of neighborhood and community shopping centers. As of June 30, 2010, the company owned interests in 1,465 retail properties comprising 150 million square feet of leasable space across 45 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 50 years.
Safe Harbor Statement
The statements in this release state the company's and management's intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Factors that could 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, (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, (vii) the availability of suitable acquisition opportunities, (viii) valuation of joint venture investments, (ix) valuation of marketable securities and other investments, (x) increases in operating costs, (xi) changes in the dividend policy for our common stock, (xii) the reduction in our income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiii) impairment charges, and (xiv) unanticipated changes in the Companya™s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. 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 filings, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2009. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.
The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the sections titled "Risk Factors" in the company's prospectus supplement filed on August 23, 2010, the companya™s prospectus dated April 24, 2009 and the Annual Report on Form 10-K for the year ended December 31, 2009, as may be updated or supplemented in the company's Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.
