NEW HYDE PARK, NY—Locally-based Kimco Realty Corp. reports it has closed on a new $1.75-billion unsecured revolving credit facility with commitments from 23 lending institutions.
The new financing replaces Kimco’s existing $1.75-billion unsecured credit facility and can be increased to $2.25 billion through an according feature, the REIT announced today.
The new revolving line of credit facility is scheduled to mature on March 17, 2018 with two additional six-month options to extend the maturity date at Kimco’s discretion to March 17, 2019. Interest accrues at an annual rate of LIBOR plus 92.5 basis points on drawn funds. In addition, the facility includes a $500-million sub-limit that provides the publicly traded owner and operator of neighborhood and community shopping centers the opportunity to borrow in alternative currencies, including Canadian dollars, British pounds sterling, Japanese yen or euros.
“The new credit facility’s competitive terms demonstrate the strength of Kimco’s balance sheet,” says Glenn G. Cohen, Kimco executive vice president, CFO and treasurer. “We appreciate the support of our bank group, which provided commitments totaling $2.8 billion, as this new credit facility provides us a meaningful level of liquidity and financial flexibility over the next five years.”
J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and RBC Capital Markets served as joint bookrunners; JPMorgan Chase Bank, N.A., as administrative agent; Wells Fargo Bank, N.A., RBC Capital Markets and The Bank of Nova Scotia as syndication agents; with Bank America N.A., Citibank N.A., Deutsche Bank Securities Inc., PNC Bank N.A., Regions Bank, UBS Securities LLC and Union Bank N.A. as documentation agents.