Real estate investment trust Kimco Realty Corp. said Tuesday it was launching a public offering of 25 million shares of its common stock at a price of $12.50 a share.
The company has granted the underwriters an option to purchase up to an additional 3.75 million shares to cover over-allotments, if any.
The offering is expected to close on Friday.
The company will use the net proceeds, expected to be roughly $300 million, to partially repay amounts borrowed under a $1.5 billion unsecured revolving credit line. The credit line is set to mature in October 2011. The company has an option to extend the line for an additional year.
Kimco Realty shares fell 57 cents, or 4.4 percent, to $12.51 in trading Tuesday.