Kimco Realty Corporation (NYSE: KIM) today announced the offering of 9,000,000 depositary shares, each representing a 1/1000 fractional interest in a share of the company’s 5.50% Class J Cumulative Redeemable Preferred Stock, $1.00 par value per share. These depositary shares, priced at $25.00 per depositary share, entitle holders of each depositary share to a 5.50% cumulative dividend or $1.375 per annum, are not convertible into common stock and are redeemable at par at the option of the company on and after July 25, 2017.
The company intends to use the net proceeds from this offering to redeem all of the outstanding depositary shares representing its Class F Preferred Stock, which redemption is expected to occur on or about August 15, 2012, and for general corporate purposes, including the potential redemption of additional classes of the company’s preferred stock when they become redeemable at the company’s option.
“We are very pleased with the execution of this new perpetual preferred stock offering,” said Dave Henry, Kimco Vice Chairman and Chief Executive Officer. “We pride ourselves on seeking opportunities in the capital markets to enhance our capital structure. This new perpetual preferred stock issuance provides meaningful long-term fixed-charge savings.”
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint book-running managers of the offering. J.P. Morgan Securities LLC and RBC Capital Markets, LLC are the joint lead managers for the offering. Raymond James & Associates, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNY Mellon Capital Markets, LLC, Piper Jaffray & Co. and Scotia Capital (USA) Inc. are the co-managers for the offering.The offering is expected to be completed on July 25, 2012, 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) Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, 7th Floor, New York, NY 10038, Attn: Prospectus Department, email: email@example.com; (ii) Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attn: Prospectus Department ; (iii) UBS Securities LLC, 299 Park Avenue, New York, NY 10171, Attention: Prospectus Specialist, telephone 1-877-827-6444, extension 561-3884; or (iv) Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, NC 28262, Attn: Capital Markets Client Support, telephone: (800) 326-5897, email: firstname.lastname@example.org. 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.
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