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Kimco Realty Corporation Announces $300 Million 4.30% Medium-Term Note Offering for Repayment of Existing Notes

^{Published on 2010-08-26 06:00:46 - Market Wire}
 

NEW HYDE PARK, N.Y.--([ BUSINESS WIRE ])--Kimco Realty Corporation (NYSE: KIM) today announced its public offering of $300 million medium-term notes due 2018 at a coupon of 4.30 percent per annum.

The notes, which were priced at 99.652 percent to yield 4.356 percent, will mature February 1, 2018. The net proceeds of approximately $297.1 million will be used to repay a $100 million 5.304% medium-term note due February 2011 and a $150 million 7.95% note due April 2011 in accordance with the optional make-whole redemption provisions of these notes. The company will use the remaining proceeds for general corporate purposes.

The company anticipates incurring prepayment costs of approximately $10-$12 million or $0.03 cents per diluted share in connection with the exercise of these redemption rights. The actual prepayment costs will be determined closer to the expected repayment date of September 24, 2010. The companya™s 2010 guidance range with respect to Funds From Operations (aFFOa), a widely accepted supplemental measure of REIT performance, remains unchanged at $1.14 - $1.18 per diluted share.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. served as the joint book-running managers for this offering. Barclays Capital Inc., BNY Mellon Capital Markets, LLC, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc. and Scotia Capital (USA) Inc. served as the co-managers.

The offering was made solely by means of a preliminary pricing supplement. Copies of the preliminary pricing supplement, prospectus supplement and base prospectus relating to these securities were filed with the Securities and Exchange Commission on August 25, 2010 and are available at the SEC web site at [ www.sec.gov ]. Copies of the prospectus supplement and the base prospectus may also be obtained by contacting Citigroup Global Markets Inc. toll free at 1-877-858-5407, Deutsche Bank Securities toll free at 1-800-503-4611 or J.P. Morgan Securities Inc. collect at 212-834-4533.

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 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 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 section titled aSupplemental Risk Factorsa in the preliminary pricing supplement filed on August 25, 2010, aCertain Risk Factorsa in the prospectus supplement filed on January 21, 2010, aRisk Factorsa in the prospectus filed on April 24, 2009 and aRisk Factorsa in 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.