Kimco Realty Corporation (KIM, Financial) has announced a strategic financial initiative involving a tender offer and consent solicitation. The company is offering to purchase for cash any and all of its outstanding depositary shares, each representing 1/1,000 of a share of its 7.25% Class N Cumulative Convertible Perpetual Preferred Stock. The offer price is set at $62.00 per security, plus any accrued and unpaid dividends.
In conjunction with this tender offer, Kimco Realty is also seeking consents from holders of the Class N Preferred Stock and depositary shares to amend the terms of the Class N Preferred Stock in the company's charter. This amendment would allow the company the option to redeem the Class N Preferred Stock for 90 days following the amendment's effectiveness at a price of $60,340.00 per share, equating to $60.34 per depositary share, plus any accrued and unpaid dividends.
The consent solicitation requires approval from at least two-thirds of the outstanding shares of Class N Preferred Stock and a majority of the company's common stockholders. The company plans to seek this approval at its next annual meeting, expected in late April or early May 2025, though it may occur earlier or later.
This move by Kimco Realty Corporation reflects a strategic approach to managing its capital structure and optimizing shareholder value. Investors and stakeholders are encouraged to review the detailed terms and implications of this offer and solicitation.
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