Kimco's HQ is also located
at 333 New Hyde Park Rd.
on Long Island.

NEW HYDE PARK, NY-Shortly after disposing of $215 million worth of shopping centers, New Hyde Park-based Kimco Realty Corp. closed on a new $400 million unsecured term loan, has confirmed with the Long Island retail REIT. The loan is scheduled to mature on April 17, 2014 with three additional one-year options to extend the maturity date at Kimco’s discretion to April 17, 2017, according to a statement from the company.

David F. Bujnicki, vice president of investor relations and corporate communications at Kimco, tells that the unsecured loan’s proceeds will be used toward “general corporate purposes,” which also includes the repayment of upcoming debt maturities.

“We do have the ability, if we want, to help us fund some other items, but there is nothing specific that it is indentified for,” he says, noting that the REIT also has a $1.75 billion unsecured resolving line of credit available for property acquisitions.

This loan, however, allows the company to have flexibility, Bujnicki adds. “We would like to take advantage of current bank rate environment, and instead of waiting later in the year and not knowing where the rate environment will be,” he adds.

Interest on the loan accrues at an annualized rate of LIBOR plus 105 basis points. PNC Bank, National Association is the administrative agent for the new term loan; PNC Capital Markets LLC is the arranger and bookrunner; Regions Bank, Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A. are syndication agents; and Citibank, N.A. and US Bank National Association are documentation agents.

Overall, the REIT has been focusing its retail strategy around primary markets and properties anchored by strong, credit-worthy tenants this year. Bujnicki previously told the company’s is also actively pursuing its “asset recycling” program of non-core assets. “We decided to improve the quality of our portfolio and create a real active and robust asset recycling program, targeting core markets and MSAs that we were focused on,” Bujnicki stated. “We were committed to disposing and selling these non-strategic shopping centers and reinvesting those proceeds back into the better markets that we want to focus on, or where we already had a presence.”

The retail REIT also said that only two stores at its shopping centers in Tustin, CA and Dayton, OH are among the 50 locations that Best Buy announced it would be closing this year.