Joint book-running managers for the offering are Merrill Lynch, Deutsche Bank Securities and UBS Investment Bank, while Citi, RBC Capital Markets, Scotia Capital and Wachovia Securities are acting as joint lead managers. Barclays Capital, CIBC World Markets and Morgan Keegan & Company, Inc. are acting as co-managers. The offering is expected to close on or about Wednesday, April 8.
During the first quarter of 2009, the company obtained approximately $212 million in secured debt commitments, says Kimco in a release. These loans were sourced from five different lenders to finance six individual properties, and are expected to have maturities ranging from three to 15 years with interest rates ranging from 5.95% to 7.625%. The company closed the financing for one property totaling $35 million on March 31, and expects to close the others during Q2.
In addition, Kimco says it's negotiating term sheets for financing secured by 14 properties that is expected to generate proceeds of approximately $193 million. The company is also pursuing additional secured debt, secured by nine other properties that it believes may generate proceeds of approximately $197 million.
According to a release, Kimco is marketing a new $200-million unsecured term loan with a group of banks, and has received commitments totaling $160 million to date from nine banks. The release states that the company "continues to work with other lending institutions and expects to close this facility during the second quarter, subject to closing conditions and documentation."
In February, Kimco repaid its $130 million 6.875% senior notes at maturity, using proceeds from its $1.5-billion revolving credit facility, according to an SEC filing. The company currently has availability totaling approximately $760 million under its US and Canadian unsecured revolving credit facilities which are scheduled to mature in 2011.
During Q1, the company signed approximately 100 new same-space leases totaling 300,000 square feet at an average rent increase of approximately 13% and approximately 50 new non-same space leases totaling 100,000 square feet. The company also signed approximately 315 renewals totaling two million square feet at an average rent increase of approximately 2.5%. Kimco says its US properties are 91.9% occupied as of March 31. The REIT claims the country's largest portfolio of neighborhood and community shopping centers, including the $100-million SoDo mixed-use development it opened in Orlando last October.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
