Kilroy Realty, L.P. Agrees to Sell $250 Million of Senior Unsecured Notes
September 14 2016 - 8:30PM
Business Wire
Company Expects to Issue $175 Million of
Notes at 3.35% and $75 Million of Notes at 3.45% by February 17,
2017
Kilroy Realty Corporation (NYSE: KRC) (the “Company”)
today announced that its operating partnership, Kilroy Realty, L.P.
(the “Operating Partnership”), has agreed to sell $250 million
aggregate principal amount of senior unsecured notes (the “Senior
Unsecured Notes”) in a private placement. The Operating Partnership
expects to issue $175 million principal amount of 3.35% Senior
Unsecured Notes (“Series A”) and $75 million of 3.45% Senior
Unsecured Notes (“Series B”) by February 17, 2017. The Senior
Unsecured Notes are guaranteed by the Company.
Series A will pay interest semi-annually at a rate of 3.35% per
annum and mature on February 17, 2027, and Series B will pay
interest semi-annually at a rate of 3.45% per annum and mature on
February 17, 2029. Proceeds from the financing will be used to
refinance existing indebtedness, to redeem preferred stock and for
general corporate purposes.
“We are very pleased with the results of this private placement
which allowed us to raise capital at very attractive rates from a
group of high quality, long-term institutional investors. The
delayed drawdown feature combined with our recently announced joint
venture will allow us to efficiently manage our development
expenditures and potential redemption of our preferred stock in
2017,” said Tyler H. Rose, the company’s executive vice president
and chief financial officer.
The Senior Unsecured Notes have not been and will not be
registered under the U.S. Securities Act of 1933, as amended (the
“Act”) or any state securities laws and may not be offered or sold
in the United States absent registration or an applicable exemption
from the registration requirements of the Act and applicable state
securities laws. This press release is for information only, does
not constitute an offer to sell or the solicitation of an offer to
buy any security and shall not constitute an offer, solicitation or
sale of any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Barclays acted as the sole placement agent for the offering.
About Kilroy Realty Corporation. With almost 70 years’
experience owning, developing, acquiring and managing real estate
assets in West Coast real estate markets, Kilroy Realty Corporation
(KRC), a publicly traded real estate investment trust and member of
the S&P MidCap 400 Index, is one of the region’s premier
landlords. The Company provides physical work environments that
foster creativity and productivity and serves a broad roster of
dynamic, innovation-driven tenants, including technology,
entertainment, digital media and health care companies.
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: investment in real estate
assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and
rental rates of properties; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired properties; the availability of cash
for distribution and debt service and exposure of risk of default
under debt obligations; adverse changes to, or implementations of,
applicable laws, regulations or legislation; and the ability to
successfully complete development and redevelopment projects on
schedule and within budgeted amounts. 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, 2015 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160914006441/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice Presidentand Treasurer(310) 481-8581
Kilroy Realty (NYSE:KRC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kilroy Realty (NYSE:KRC)
Historical Stock Chart
From Apr 2023 to Apr 2024