Kimco Realty Corporation to Sell 25 Million Shares of Newly Issued Common Stock

Strategic Insights -

Kimco Realty Corporation, North America's largest owner and operator of neighborhood and community shopping centers, has announced plans to sell 25,000,000 shares of newly issued common stock in an underwritten public offering. The company aims to raise funds to partially repay amounts borrowed under its $1.5 billion unsecured U.S. revolving credit facility, which is scheduled to mature in October 2011. The offering is expected to provide the company with essential capital to meet its financial obligations and support its ongoing business operations.

Key Takeaways:

  • The offering involves the sale of 25,000,000 shares of newly issued common stock, with an option for the underwriters to purchase an additional 3,750,000 shares to cover over-allotments.
  • The sole book-running manager for the offering is Deutsche Bank Securities Inc.
  • Kimco Realty Corporation intends to use the net proceeds from the offering to partially repay amounts borrowed under its $1.5 billion unsecured U.S. revolving credit facility, which has a maturity date of October 2011.
  • The company's option to extend the facility for an additional one-year term is also mentioned.
  • Any remaining net proceeds will be allocated for general corporate purposes.
  • Kimco Realty Corporation's real estate investment trust (REIT) owns and operates a portfolio of 1,462 retail properties across 45 states, Puerto Rico, Canada, Mexico, and South America, with a total leasable space of 153 million square feet.

Statistics:

  • 25,000,000 shares of newly issued common stock will be sold through the underwritten public offering.
  • The option to purchase an additional 3,750,000 shares to cover over-allotments is available to the underwriters.
  • $1.5 billion unsecured U.S. revolving credit facility-maturity date: October 2011.
  • An additional one-year option to extend the facility is available to the company.
  • The LIBOR rate plus a spread of 0.425% is the interest rate applied to amounts outstanding under the $1.5 billion facility.
  • The company has a portfolio of 1,462 retail properties with a total leasable space of 153 million square feet as of September 30, 2009.

Sources:

  • Kimco Realty Corporation, "Corporate Release: Kimco Realty Corporation Announces its Intention to Sell 25 Million Shares of Newly Issued Common Stock Through an Underwritten Public Offering" (December 7, 2009).
  • Securities and Exchange Commission filings (Annual Report on Form 10-K for the year ended December 31, 2008).
  • Company website: About Kimco Realty Corporation.