Kimco Makes $717M Stock Offering

NEW HYDE PARK, NY-Kimco Realty Corp. is issuing 91.5 million shares of common stock at $7.10 apiece and the issue’s underwriters have exercised an option to purchase 13.7 million additional shares, the retail REIT announced late Friday afternoon. Net proceeds from the offering, initially announced on Thursday as 70 million shares, are expected to be approximately $717.3 million, according to a release, and will be used for debt repayment and general corporate purposes.

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.