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NEW HYDE PARK, NY-Kimco Realty Corp. says it has closed on a two-year unsecured term loan of $220 million, an increase of 10% over the $200-million loan the retail REIT initially marketed earlier this month. Proceeds from the loan will be used to partially repay outstanding amounts under its US unsecured revolving credit facility, the company says in a release.

A consortium of 12 banks, each providing between $5 million and $40 million, participated in the facility, according to Kimco. The Bank of Nova Scotia and RBC Capital Markets acted as joint lead arrangers and joint book-running managers.

The loan bears interest at an annual rate of Libor plus 465 basis points, subject to a 2% Libor floor. Kimco recently repaid $130 million of its unsecured medium term notes, bearing interest at 6.88%, through use of its US credit facility. After these pay-downs, the company will have approximately $1.6 billion of available borrowing capacity under its credit facilities, which bear interest at a rate of Libor plus 42.5 basis points and expire in 2012, according to a release.

Earlier this month, Kimco estimated that its funds from operations for 2009 would be between $1.70 and $1.85 per diluted common share, not including the $717.3-million stock offering the REIT made at the beginning of April, according to an SEC filing. In the filing, Kimco noted that estimates of future FFO involve numerous assumptions such as rental income, interest rates, tenant defaults, occupancy rates, foreign currency exchange rates, selling prices of properties held for disposition, expenses, insurance costs and numerous other factors. “Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range indicated,” according to the filing.

In a GlobeSt.com retail webinar presented by Real Estate Forum earlier this month, Kimco’s vice chairman and president, David Henry, provided insight as to why those results may vary. “If the US is going to continue losing jobs at 500,000 or 600,000 a month, that is a horrible thing for real estate fundamentals,” he said. “As long as real estate fundamentals are under attack in terms of rents and cap rates and so forth, it’s hard for the market to find its feet. I look towards the employment.”

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