Kimco Closes $220M Term Loan

NEW HYDE PARK, NY-Kimco Realty Corp. says it has closed on a two-year unsecured term loan of $220 million, an increase of 10% over the $200-million loan the retail REIT initially marketed earlier this month. Proceeds from the loan will be used to partially repay outstanding amounts under its US unsecured revolving credit facility, the company says in a release.

A consortium of 12 banks, each providing between $5 million and $40 million, participated in the facility, according to Kimco. The Bank of Nova Scotia and RBC Capital Markets acted as joint lead arrangers and joint book-running managers.

The loan bears interest at an annual rate of Libor plus 465 basis points, subject to a 2% Libor floor. Kimco recently repaid $130 million of its unsecured medium term notes, bearing interest at 6.88%, through use of its US credit facility. After these pay-downs, the company will have approximately $1.6 billion of available borrowing capacity under its credit facilities, which bear interest at a rate of Libor plus 42.5 basis points and expire in 2012, according to a release.