Kimco Realty Prices Upsized $525M 3.5% Exchangeable Senior Notes
KIM•Kimco OP priced $525 million of 3.50% exchangeable senior notes due 2031, upsizing the offering from $500 million and setting an initial exchange price with a 27.5% premium over June 10’s share price. Net proceeds of $513.5 million will repurchase $104.7 million of shares and fund debt repayment and acquisitions.
1. Pricing and Upsizing
Kimco Realty OP, LLC issued $525.0 million of 3.50% exchangeable senior notes due June 15, 2031, increasing the deal size from $500.0 million. The notes, fully and unconditionally guaranteed by Kimco Realty Corporation, are set to settle on June 15, 2026, subject to customary closing conditions.
2. Exchange Terms
The initial exchange rate is 30.9028 shares per $1,000 principal amount, reflecting an exchange price of approximately $32.36 per share, a 27.5% premium to the last reported sale. Kimco OP granted initial purchasers a 13-day option to buy up to an additional $75.0 million of notes and structured redemption and exchange rights tied to share price thresholds and fundamental change events.
3. Use of Proceeds
Kimco OP expects net proceeds of about $513.5 million after discounts and offering expenses. Approximately $104.7 million will fund a concurrent share repurchase of 4,125,900 common shares, with the balance earmarked for debt repayment, acquisitions, redevelopment and other general corporate purposes.
