Loan & DebtJun 11, 2026, 08:46 AM
Kimco Realty Prices $525M Exchangeable Senior Notes Offering
AI Summary
Kimco Realty Corp. announced the pricing of an upsized offering of $525 million in aggregate principal amount of 3.50% exchangeable senior notes due 2031 by its operating subsidiary, Kimco Realty OP, LLC. The offering size was increased from the previously announced $500 million. The notes are senior, unsecured obligations of Kimco OP, guaranteed by Kimco Realty Corporation. The company intends to use a portion of the net proceeds to repurchase shares of its common stock and the remainder for general corporate purposes, including debt repayment and funding acquisitions.
Key Highlights
- Kimco Realty OP priced $525M of 3.50% exchangeable senior notes due 2031.
- Offering size increased from $500M to $525M; initial purchasers have option for additional $75M.
- Notes mature June 15, 2031, with 3.50% annual interest payable semi-annually.
- Exchange rate set at 30.9028 shares per $1,000 principal, implying an initial exchange price of $32.36/share.
- Initial exchange price represents a ~27.5% premium over the June 10, 2026 closing stock price of $25.38.
- Net proceeds estimated at $513.5M (or $587M if option exercised) to be used for debt repayment and general corporate purposes.
- Approximately $104.7M of proceeds to be used for concurrent repurchase of Kimco common stock.
Price Impact
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