Kimco Realty Announces Pricing of $500 Million 2.800% Notes due 2026

NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--

Kimco Realty Corp. KIM today announced its public offering of $500 million aggregate principal amount of notes due 2026 at a coupon of 2.800% per annum with an effective yield of 2.895%, maturing October 1, 2026. The offering is expected to settle on August 18, 2016, subject to customary closing conditions.

The company intends to use the net proceeds of approximately $492.2 million from the offering to fund the previously announced redemption of $290.9 million aggregate principal amount of its outstanding 5.70% Senior Notes due May 1, 2017, with the remainder to be used for general corporate purposes, including to (i) pre-fund 2017 debt maturities, including $137.2 million of mortgage debt outstanding with an interest rate of 6.32%, and any associated prepayment penalties, and (ii) partially reduce borrowings (of which $100 million were outstanding as of June 30, 2016) under the company's revolving credit facility maturing in March 2018 (subject to two six-month extension options), which borrowings bear interest at a rate of one-month LIBOR plus 0.925% (1.37% as of June 30, 2016).

Barclays Capital Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC served as the joint book-running managers for this offering. Citigroup Global Markets Inc. and Scotia Capital (USA) Inc. served as the senior co-managers. BB&T Capital Markets, a division of BB&T Securities, LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. served as the co-managers.

The offering was made pursuant to an effective shelf registration statement, prospectus and related prospectus supplement. Copies of the prospectus supplement and the base prospectus, when available, may be obtained by contacting Barclays Capital Inc., 1155 Long Island Avenue, Edgewood, New York 11717, Attention: c/o Broadridge Financial Solutions, Telephone: (888) 603-5847 and/or email barclaysprospectus@broadridge.com, J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk – 3rd floor, Telephone: (212) 834-4533 or UBS Securities LLC, 1285 Avenue of the Americas, New York, New York 10019, Attention: Prospectus Specialist, Telephone: (888) 827-7275. Investors may also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission's website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Kimco

Kimco Realty Corp. KIM is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is North America's largest publicly-traded owner and operator of open-air shopping centers. As of June 30, 2016, the company owned interests in 537 U.S. shopping centers comprising 86 million square feet of leasable space across 36 states and Puerto Rico. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years.

Safe Harbor Statement

The statements in this press release state the company's and management's intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company's ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates and management's ability to estimate the impact thereof, (vii) risks related to the company's international operations, (viii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with the company's expectations, (ix) valuation and risks related to the company's joint venture and preferred equity investments, (x) valuation of marketable securities and other investments, (xi) increases in operating costs, (xii) changes in the dividend policy for the company's common stock, (xiii) the reduction in the company's income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiv) impairment charges and (xv) unanticipated changes in the company's intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company's SEC filings. Copies of each filing may be obtained from the company or the SEC.

The company refers you to the documents filed by the company from time to time with the SEC, specifically the sections titled "Risk Factors" in the prospectus supplement and prospectus relating to the company's 2.800% Notes due 2026 and in the company's Annual Report on Form 10-K for the year ended December 31, 2015, as may be updated or supplemented in the company's Quarterly Reports on Form 10-Q and the company's other filings with the SEC, which discuss these and other factors that could adversely affect the company's results. The company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

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