Kimco Realty prices upsized $230 million preferreds; Vornado Realty Trust edges lower

By Cristal Cody

Tupelo, Miss., Dec. 11 – Kimco Realty Corp. priced an upsized $230 million of 5.25% $25-par class M cumulative redeemable preferred shares on Monday.

The deal was upsized from $150 million, a source said.

The 5.25% perpetual preferreds were initially talked to price in the 5.25% to 5.3% area.

Kimco’s preferreds were freed to trade over the counter under the temporary symbol “KMCCP.”

In new issue trading, Vornado Realty Trust’s new 5.25% split-rated series M cumulative redeemable perpetual preferred stock fell 4 cents to close the day at $24.78.

The preferreds were quoted on Friday at $24.76 bid, $24.82 offered in the secondary market.

Vornado Realty Trust sold $300 million of the $25-par preferreds (Baa3/BBB-/BB+) on Dec. 4.

The preferred stock is trading over the counter under the temporary symbol “VNNDP.”

Overall, preferred stocks softened on Monday.

The Wells Fargo Hybrid and Preferred Securities index closed off 14 basis points.

The U.S. iShares Preferred Stock ETF ended down 8 bps.

Kimco prints at 5.25%

Kimco Realty sold 9.2 million depositary shares in the $230 million offering of 5.25% $25-par class M cumulative redeemable preferred shares (Baa2/BBB-/BBB-) on Monday, according to an FWP filed with the Securities and Exchange Commission.

The company sold depositary shares in the offering at $25.00 per depositary share. Each depositary share represents 1/1000th of a share of the series M preferred stock.

The deal includes an over-allotment option of 1.38 million depositary shares.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.

The company plans to list the preferreds on the New York Stock Exchange.

Proceeds will be used for general corporate purposes, including development and redevelopment, redemption of other classes of preferred stock and debt reduction.

Kimco is a New Hyde Park, N.Y.-based real estate investment trust.

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