Kilroy Realty, L.P. Prices $400 Million of 4.375% Senior Unsecured Notes Due 2025
September 09 2015 - 4:51PM
Business Wire
Kilroy Realty Corporation (NYSE:KRC) today announced that
its operating partnership, Kilroy Realty, L.P., has priced an
underwritten public offering of $400 million aggregate principal
amount of its 4.375% senior unsecured notes due 2025 (the “Notes”).
The Notes will pay interest semi-annually at a rate of 4.375% per
annum and mature on October 1, 2025. The Notes were priced at
99.444% of the principal amount. The offering is expected to close
on September 16, 2015, subject to customary closing conditions.
BofA Merrill Lynch, Barclays, J.P. Morgan and Wells Fargo
Securities acted as joint book-running managers.
Net proceeds from the offering will be approximately $394.5
million, after deducting underwriting discounts and our estimated
expenses. We intend to use the net proceeds from the offering to
refinance the operating partnership’s 5.0% senior notes due 2015
and for general corporate purposes, which may include acquiring
land and properties, funding development projects and repaying
other outstanding indebtedness. Pending application of the net
proceeds for those purposes, we may use the net proceeds from the
offering to repay borrowings under the operating partnership’s
revolving credit facility and/or temporarily invest such net
proceeds in marketable securities.
The Notes are being offered pursuant to an effective shelf
registration statement filed by Kilroy Realty Corporation and
Kilroy Realty, L.P. with the Securities and Exchange Commission
(“SEC”). The offering will be made only by means of the prospectus
supplement and accompanying prospectus. The preliminary prospectus
supplement and accompanying prospectus related to the offering has
been filed with the SEC and is available on the SEC’s website at
http://www.sec.gov. A copy of the final prospectus supplement and
accompanying prospectus related to the offering may be obtained,
when available, by calling Merrill Lynch, Pierce, Fenner &
Smith Incorporated toll-free at (800) 294-1322 or by email to
dg.prospectus_requests@baml.com; by calling Barclays Capital Inc.
toll-free at (888) 603-5847 or by email to
barclaysprospectus@broadridge.com; by calling J.P. Morgan
Securities LLC collect at (212) 834-4533; or by calling Wells Fargo
Securities, LLC toll-free at (800) 645-3751 or by email to
wfscustomerservice@wellsfargo.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor will there be
any sale of these securities in any jurisdiction in which, or to
any person to whom, such offer, solicitation or sale would be
unlawful.
About Kilroy Realty Corporation. Kilroy Realty
Corporation, a member of the S&P MidCap 400 Index, is a real
estate investment trust active in major West Coast markets. For
over 65 years, Kilroy Realty Corporation has owned, developed,
acquired and managed real estate assets primarily in the coastal
regions of Los Angeles, Orange County, San Diego, the San Francisco
Bay Area and greater Seattle. At June 30, 2015, Kilroy Realty
Corporation’s stabilized portfolio totaled approximately 13.1
million square feet of office properties.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on our current expectations, beliefs and
assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are
difficult to predict, many of which are outside of our control.
Accordingly, actual performance, results and events may vary
materially from those indicated in forward-looking statements, and
you should not rely on forward-looking statements as predictions of
future performance, results or events. Numerous factors could cause
actual future performance, results and events to differ materially
from those indicated in forward-looking statements, including,
among others, risks associated with: global market and general
economic conditions and their effect on our liquidity and financial
conditions and those of our tenants; adverse economic or real
estate conditions in California and Washington, including any
recurrence of California’s budget deficits; investment in real
estate assets, which are illiquid, and trends in the real estate
industry; defaults on or non-renewal of leases by tenants; any
significant downturn in our tenants’ businesses; our ability to
re-lease property at or above current market rates; costs to comply
with government regulations, including environmental remediation;
the availability of cash for distribution and debt service and
exposure to risk of default under debt obligations; significant
competition, which may decrease the occupancy and rental rates of
properties; potential losses that may not be covered by insurance;
the ability to successfully complete acquisitions and dispositions
on announced terms; the ability to successfully operate acquired
properties; the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts;
defaults on leases for land on which some of our properties are
located; adverse changes to, or implementations of, applicable
laws, regulations or legislation; environmental uncertainties and
risks related to natural disasters; and our ability to maintain our
status as a real estate investment trust. These factors are not
exhaustive. For a discussion of additional factors that could
materially adversely affect our business and financial performance,
see the factors included under the caption “Risk Factors” in our
annual report on Form 10-K for the year ended December 31, 2014,
the preliminary prospectus supplement and prospectus for this
offering and our other filings with the Securities and Exchange
Commission. All forward-looking statements are based on information
that was available, and speak only as of the date on which they are
made. We assume no obligation to update any forward-looking
statement made in this press release that becomes untrue because of
subsequent events, new information or otherwise, except to the
extent required in connection with ongoing requirements under U.S.
securities laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20150909006704/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice Presidentand Treasurer(310) 481-8581
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