Kimco Realty Corp. entered into a $220 million unsecured term loan with a consortium of 12 banks, including the Bank of Nova Scotia, Royal Bank of Canada, PNC Bank, Bank of America, N.A. and Wells Fargo Bank NA, among others. The loan features a two-year term and will expire in April 2011. It comes with an interest at an annual rate of LIBOR plus 465 basis points, subject to a 2.0 percent LIBOR floor. The company also has the option of paying interest at a spread to the ABR (currently at 3.65 percent).
Kimco recently repaid $130 million of its unsecured medium term notes, at an interest rate of 6.88 percent, through its U.S. unsecured revolving credit facility. Proceeds from the new loan will be used to repay certain outstanding amounts under the credit facility, which was entered into in October 2007. After these payments are made, Kimco will have approximately $1.6 billion in available borrowing capacity under its credit facilities, with an interest rate of LIBOR plus 42.5 basis points and an expiration date of 2012. At that time, the company will have the option to extend the facilities.
Each of the banks involved in the transaction provided between $5 million and $40 million. The Bank of Nova Scotia and RBC Capital Markets served as joint lead arrangers and joint book-running managers on the deal.
Other Notable Deals
26 Del Sur Crossroads I LLC sold the Crossroads Entertainment Center, a 90,897-square-foot retail property in Chino Hills, Calif., to GAS Distomo Inc., a 1031 Exchange buyer, for $25.5 million. The buyer assumed an in-place 10-year fixed-rate loan on the property, with an interest rate of 6.2 percent. The center is 98 percent occupied. Faris Lee Investments represented the seller in the transaction. Commercial Real Estate Services represented the buyer….West Bay Drive, LLC sold Belleair Bazaar, a 38,569-square-foot shopping center in Clearwater, Fla., to Sunrise Plaza Holdings, LLC for $6.5 million. The property was 82.3 percent occupied at the time of the sale. Plaza Advisors represented the seller in the transaction…. BG Village LLC sold the Village Shopping Center, a 135,453-square-foot shopping center in Jacksonville, Fla., to Noble Management Co. for $5.9 million. The property was 98 percent occupied at the time of the sale. Plaza Advisors represented both parties in the transaction…. Lakepalm Shopping Center, LTD, an affiliate of RMC Property Group, sold the Palm Center, a 132,000-square-foot shopping center in Tampa, Fla., to Odyssey (IX) Commercial DP IV, LLC for $4 million. RMC Property Group represented the seller in the transaction. Century Retail represented the buyer…. MV Investors, Inc. sold a 15,000-square-foot single-tenant Fresh & Easy Neighborhood Market in Loma Linda, Calif. to Downtown Gateway for $2.9 million. The transaction featured a 6.6 percent cap rate. Hanley Investment Group Real Estate Advisors represented both parties in the transaction…. Piermont Properties bought Uniondale Shopping Center, a 60,807-square-foot retail property in Uniondale, N.Y., for an undisclosed sum. The building is currently vacant. Cushman & Wakefield represented both the seller and the buyer in the transaction.