Kimco Realty Corp. (KIM) said that it plans to sell 25 million shares of newly issued common stock in an underwritten public offering.
The underwriters will be granted a 30-day option to purchase up to an additional 3.75 million shares to cover over-allotments, if any.
The company expects to use the net proceeds received from this offering to partially repay amounts borrowed under its $1.5 billion unsecured U.S. revolving credit facility. The company's $1.5 billion unsecured U.S. revolving credit facility is scheduled to mature in October 2011.
The company has an option to extend the facility for an additional 1 year term. Amounts outstanding thereunder bear interest at an annual rate of LIBOR plus a spread, which spread is currently 0.425%. Any remaining net proceeds from this offering will be used for general corporate purposes.
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