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
3333 New Hyde Park Road
New Hyde Park, New York 11042-0020
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
----------- -----------------------
Merrill Lynch, Pierce, Fenner & Smith
Incorporated.............................. 1,315,000
UBS Warburg LLC....................................... 1,315,000
Citigroup Global Markets Inc.......................... 1,315,000
Wachovia Securities, Inc.............................. 1,315,000
Bear, Stearns & Co. Inc............................... 210,000
Legg Mason Wood Walker, Incorporated.................. 210,000
McDonald Investments Inc., a KeyCorp Company.......... 210,000
Prudential Securities Incorporated.................... 210,000
Raymond James & Associates, Inc....................... 210,000
RBC Dain Rauscher Inc................................. 210,000
Advest, Inc........................................... 30,000
BB&T Capital Markets, a division of
Scott and Stringfellow, Inc...................... 30,000
CIBC World Markets Corp............................... 30,000
D.A. Davidson & Co.................................... 30,000
Fahnestock & Co. Inc.................................. 30,000
H&R Block Financial Advisors, Inc..................... 30,000
HSBC Securities (USA) Inc............................. 30,000
Janney Montgomery Scott LLC........................... 30,000
J.J.B. Hilliard, W.L. Lyons, Inc...................... 30,000
C.L. King & Associates, Inc........................... 30,000
Morgan Keegan & Company, Inc.......................... 30,000
Quick & Reilly, Inc................................... 30,000
Charles Schwab & Co., Inc............................. 30,000
Southwest Securities, Inc............................. 30,000
U.S. Bancorp Piper Jaffray Inc........................ 30,000
Wells Fargo Investment Services, LLC.................. 30,000
----------
Total................................. 7,000,000
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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+; Moody's 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, Stearns & Co. Inc., Legg Mason Wood Walker,
Incorporated, McDonald Investments Inc., a KeyCorp Company, Prudential
Securities Incorporated, Raymond James & Associates, Inc. and RBC Dain
Rauscher Inc.
Other material terms: None
Closing date and location: June 5, 2003, 10:00 a.m.; Sidley Austin
Brown & Wood LLP, 787 Seventh Avenue, New York, New York 10019
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,
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
UBS WARBURG LLC
CITIGROUP GLOBAL MARKETS INC.
WACHOVIA SECURITIES, INC.
BEAR, STEARNS & CO. INC.
LEGG MASON WOOD WALKER, INCORPORATED
MCDONALD INVESTMENTS INC., A KEYCORP COMPANY
PRUDENTIAL SECURITIES INCORPORATED
RAYMOND JAMES & ASSOCIATES, INC.
RBC DAIN RAUSCHER INC.
By: Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
By: /s/ Jack Vissicchio
-----------------------------------
Name: Jack Vissicchio
Title: Managing Director
By: UBS Warburg LLC
By: /s/ David Reynolds
-----------------------------------
Name: David Reynolds
Title: Executive Director
Acting on behalf of themselves and the other
named Underwriters
Accepted:
KIMCO REALTY CORPORATION
By: /s/ Glenn G. Cohen
-------------------------------
Name: Glenn G. Cohen
Title: Vice President-Treasurer
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