Exhibit 1(k)
KIMCO REALTY CORPORATION
(a Maryland corporation)
Depositary Shares
Each Representing 1/10 of a Share of 6.65% Class F
Cumulative Redeemable Preferred Stock
(Liquidation Preference Equivalent to $25.00 Per Depositary Share)
TERMS AGREEMENT
---------------
Dated: May 7, 2003
To: Kimco Realty Corporation
0000 Xxx Xxxx Xxxx Xxxx
Xxx Xxxx Xxxx, Xxx Xxxx 00000-0000
Attention: Chairman of the Board of Directors
Dear Sirs:
We understand that Kimco Realty Corporation, a Maryland corporation
(the "Company"), proposes to issue and sell 7,000,000 depositary shares (the
"Depositary Shares") evidenced by depositary receipts, each representing a 1/10
interest in a share of the Company's 6.65% Class F Cumulative Redeemable
Preferred Stock, par value $1.00 per share (the "Class F Preferred Stock") (such
Class F Preferred Stock and Depositary Shares being hereinafter referred to
collectively as the "Underwritten Securities"). Subject to the terms and
conditions set forth or incorporated by reference herein, the underwriters named
below (the "Underwriters") offer to purchase, severally and not jointly, the
respective numbers of Initial Underwritten Securities (as defined in the
Underwriting Agreement referred to below) set forth below opposite their
respective names, at the purchase price set forth below.
Number
of Shares of
Underwriter Underwritten Securities
----------- -----------------------
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated.............................. 1,315,000
UBS Warburg LLC....................................... 1,315,000
Citigroup Global Markets Inc.......................... 1,315,000
Wachovia Securities, Inc.............................. 1,315,000
Bear, Xxxxxxx & Co. Inc............................... 210,000
Xxxx Xxxxx Xxxx Xxxxxx, Incorporated.................. 210,000
McDonald Investments Inc., a KeyCorp Company.......... 210,000
Prudential Securities Incorporated.................... 210,000
Xxxxxxx Xxxxx & Associates, Inc....................... 210,000
RBC Xxxx Xxxxxxxx Inc................................. 210,000
Advest, Inc........................................... 30,000
BB&T Capital Markets, a division of
Xxxxx and Xxxxxxxxxxxx, Inc...................... 30,000
CIBC World Markets Corp............................... 30,000
X.X. Xxxxxxxx & Co.................................... 30,000
Xxxxxxxxxx & Co. Inc.................................. 30,000
H&R Block Financial Advisors, Inc..................... 30,000
HSBC Securities (USA) Inc............................. 30,000
Xxxxxx Xxxxxxxxxx Xxxxx LLC........................... 30,000
J.J.B. Xxxxxxxx, X.X. Xxxxx, Inc...................... 30,000
X.X. Xxxx & Associates, Inc........................... 30,000
Xxxxxx Xxxxxx & Company, Inc.......................... 30,000
Quick & Xxxxxx, Inc................................... 30,000
Xxxxxxx Xxxxxx & Co., Inc............................. 30,000
Southwest Securities, Inc............................. 30,000
U.S. Bancorp Xxxxx Xxxxxxx Inc........................ 30,000
Xxxxx Fargo Investment Services, LLC.................. 30,000
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Total................................. 7,000,000
==========
The Underwritten Securities shall have the following terms:
Title of Securities: Depositary Shares Each Representing a 1/10 Interest
in a Share of 6.65% Class F Cumulative Redeemable Preferred Stock.
Number of Depositary Shares: 7,000,000.
Fractional interest of each share of Class F Preferred Stock
represented by a Depositary Share: 1/10.
Current Ratings: Standard & Poor's - BBB+; Xxxxx'x Investors
Service, Inc. - Baa2.
Dividend Rate: 6.65% of the $250.00 liquidation preference per year, or
$16.625 per share of Class F Preferred Stock (equal to $1.6625
per year per Depositary Share).
Dividend Payment Dates: January 15, April 15, July 15 and October 15 of
each year, commencing July 15, 2003.
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Liquidation Preference: $250.00 per share of Class F Preferred Stock
(or $25.00 per Depositary Share), plus accrued and unpaid dividends, if
any, to the date of payment.
Public offering price per share: $25.00, plus accrued dividends, if
any, from June 5, 2003.
Purchase price per share: $24.2125.
Conversion provisions: The Class F Preferred Stock and the Depositary
Shares representing Class F Preferred Stock are not convertible into or
exchangeable for any other property or securities of the Company,
except that, in limited circumstances, the Class F Preferred Stock and
the Depositary Shares representing Class F Preferred Stock may be
automatically converted into or exchanged for Class F excess preferred
stock or Depositary Shares representing Class F excess preferred stock.
Optional redemption provisions: Except relating to the preservation of the
Company's status as a real estate investment trust, the Company may not
redeem the Class F Preferred Stock prior to June 5, 2008. On or after
June 5, 2008, the Company may, at its option, redeem the Class F
Preferred Stock (and the preferred stock depositary will redeem the
number of Depositary Shares representing the Class F Preferred Stock
redeemed) for cash, in whole or in part, at a redemption price of
$250.00 per share of the Class F Preferred Stock (equal to $25.00 per
Depositary Share), plus accrued and unpaid dividends, if any, to the
redemption date.
Sinking fund requirements: None.
Number of Option Securities, if any, that may be purchased by the
Underwriters: None.
Delayed Delivery Contracts: Not authorized
Additional co-managers, if any: Citigroup Global Markets Inc., Wachovia
Securities, Inc., Bear, Xxxxxxx & Co. Inc., Xxxx Xxxxx Xxxx Xxxxxx,
Incorporated, McDonald Investments Inc., a KeyCorp Company, Prudential
Securities Incorporated, Xxxxxxx Xxxxx & Associates, Inc. and RBC Xxxx
Xxxxxxxx Inc.
Other material terms: None
Closing date and location: June 5, 2003, 10:00 a.m.; Sidley Xxxxxx
Xxxxx & Xxxx LLP, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000
All of the provisions contained in the Underwriting Agreement attached
as Annex A hereto are hereby incorporated by reference in their entirety herein
and shall be deemed to be a part of this Terms Agreement to the same extent as
if such provisions had been set forth in full herein. Terms defined in such
document are used herein as therein defined.
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Please accept this offer no later than 7:00 P.M. (New York City time)
on May 7, 2003 by signing a copy of this Terms Agreement in the space set forth
below and returning the signed copy to us.
Very truly yours,
XXXXXXX XXXXX & CO.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
UBS WARBURG LLC
CITIGROUP GLOBAL MARKETS INC.
WACHOVIA SECURITIES, INC.
BEAR, XXXXXXX & CO. INC.
XXXX XXXXX XXXX XXXXXX, INCORPORATED
MCDONALD INVESTMENTS INC., A KEYCORP COMPANY
PRUDENTIAL SECURITIES INCORPORATED
XXXXXXX XXXXX & ASSOCIATES, INC.
RBC XXXX XXXXXXXX INC.
By: Xxxxxxx Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
By: /s/ Xxxx Xxxxxxxxxx
-----------------------------------
Name: Xxxx Xxxxxxxxxx
Title: Managing Director
By: UBS Warburg LLC
By: /s/ Xxxxx Xxxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxxx
Title: Executive Director
Acting on behalf of themselves and the other
named Underwriters
Accepted:
KIMCO REALTY CORPORATION
By: /s/ Xxxxx X. Xxxxx
-------------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President-Treasurer
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