Kimco Realty OP, LLC, the operating subsidiary of Kimco Realty Corporation (NYSE: KIM), announced plans to offer $500 million in exchangeable senior notes due 2031 through a private placement to qualified institutional buyers.

The notes will be fully guaranteed by Kimco Realty Corporation on a senior, unsecured basis. Initial purchasers will receive an option to purchase up to an additional $75 million in notes within 13 days of issuance.

The exchangeable notes will mature on June 15, 2031, and accrue interest payable semi-annually. Noteholders can exchange their notes under certain circumstances for cash and potentially shares of Kimco's common stock. The company can redeem the notes starting June 20, 2029, if Kimco's stock price exceeds 130% of the exchange price for a specified period.

Kimco OP stated it plans to use approximately $125 million of the net proceeds to repurchase shares of Kimco's common stock in privately negotiated transactions. The remaining proceeds will fund general corporate purposes, including debt redemption and potential acquisitions and redevelopment projects.

The notes have not been registered under the Securities Act of 1933 and will be sold pursuant to exemptions from registration requirements. Interest rates, initial exchange rates and other terms will be determined at pricing.

Kimco Realty is a real estate investment trust that owns and operates grocery-anchored shopping centers and mixed-use properties. As of March 31, 2026, the company owned interests in 565 U.S. shopping centers comprising 100 million square feet of gross leasable space.

The information is based on a company press release.