Kimco Realty Corp. announced that it has closed on a new $2.0 billion unsecured revolving credit facility with commitments from 21 lending institutions, replacing the company’s existing $2.25 billion unsecured revolving credit facility. The new facility, expandable to $2.75 billion under an accordion feature, is scheduled to mature on March 17, 2024 (or March 17, 2025 if Kimco exercises two six-month options to extend the maturity date).
“Our new credit facility fully illustrates the strength of Kimco’s balance sheet given the robust demand and favorable terms we’ve been able to achieve,” said Glenn G. Cohen, Kimco executive vice president, chief financial officer and treasurer, “Our new credit facility was oversubscribed with commitments totaling $3.4 billion, which enabled us to extend the terms and lower our rate. We greatly appreciate our bank group for their continued support in providing us meaningful financial flexibility and liquidity as we work to further enhance shareholder value.”
Interest on borrowings under the Credit Agreement accrues at a spread (currently 0.775%) to LIBOR or, at the company’s option, a spread (currently 0.0%) to the base rate defined in the Credit Agreement, that in each case fluctuates in accordance with changes in Kimco’s senior debt ratings. As part of this credit facility, Kimco also has a competitive bid option whereby Kimco may auction requested borrowings to the bank group.
JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, PNC Capital Markets LLC and RBC Capital Markets served as Joint Bookrunners, JPMorgan Chase Bank, N.A. serves as Administrative Agent, and JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, PNC Capital Markets LLC, RBC Capital Markets, The Bank of Nova Scotia, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Bank, Ltd., Regions Capital Markets, U.S. Bank National Association, Barclays Bank PLC, TD Securities Inc., Suntrust Robinson Humphrey, Inc., BNP Paribas Securities Corp. and BMO Capital Markets Corp. served as Joint Lead Arrangers.