Kilroy Realty Corporation Closes Common Stock Offering
January 10 2017 - 4:11PM
Business Wire
Kilroy Realty Corporation (NYSE: KRC) today announced
that it has completed its public offering of 4,427,500 shares of
its common stock at $72.75 per share, including 577,500 shares sold
to the underwriters upon the exercise of their option to purchase
additional shares in full. BofA Merrill Lynch, J.P. Morgan,
Barclays, Jefferies and Wells Fargo Securities acted as joint
book-running managers; BTIG, KeyBanc Capital Markets and RBC
Capital Markets acted as senior co-managers; and BBVA, BNP PARIBAS,
Comerica Securities, MUFG and SMBC Nikko acted as co-managers of
the offering.
Net proceeds from the offering were approximately $308.8 million
(after deducting underwriting discounts and commissions and
estimated offering expenses payable by the Company). The Company
intends to use the net proceeds from the offering for general
corporate purposes, which may include partially funding the
Company’s previously announced special cash dividend, funding
development projects, acquiring land and properties and repaying
outstanding indebtedness, which may include borrowings, if any,
under the operating partnership’s revolving credit facility and
borrowings under the operating partnership’s term loan facilities.
Pending application of the net proceeds for those purposes, the
operating partnership may temporarily invest such proceeds in
marketable securities.
This offering was made pursuant to an effective shelf
registration statement and prospectus and related prospectus
supplement filed by the Company with the Securities and Exchange
Commission. 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 prior to registration or qualification under the
securities laws of any such jurisdiction.
Copies of the prospectus supplement and related prospectus for
this offering may be obtained by contacting BofA Merrill Lynch,
NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte,
North Carolina 28255-0001, Attention: Prospectus Department or
email: dg.prospectus_requests@baml.com; J.P. Morgan, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, New York
11717, telephone: (866) 803-9204; Barclays, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, New York
11717, telephone: (888) 603-5847 or email:
barclaysprospectus@broadridge.com; Jefferies, Attention: Equity
Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New
York, New York 10022, telephone: (877) 821-7388; or Wells Fargo
Securities, Attention: Equity Syndicate Department, 375 Park
Avenue, New York, New York 10152, telephone: (800) 326-5897 or
email: cmclientsupport@wellsfargo.com.
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
nearly 70 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 September 30, 2016, Kilroy
Realty Corporation’s stabilized portfolio totaled approximately
13.6 million square feet of office properties and 200
residential units.
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 generally, and specifically, in the States of
California and Washington; investment in our real estate assets,
which are illiquid; trends in the real estate industry; defaults on
or non-renewal of leases by tenants; any significant downturn in
tenants’ businesses; our ability to re-lease property at or above
current market rates; costs to comply with government regulations,
including environmental remediations; the availability of cash for
distribution and debt service and exposure to risk of default under
debt obligations; increases in interest rates and our ability to
manage interest rate exposure; failure of interest rate hedging
contracts to perform as expected and the effectiveness of such
arrangements; the availability of financing on attractive terms or
at all, which may adversely impact our future interest expense and
our ability to pursue development, redevelopment and acquisition
opportunities and refinance existing debt; a decline in real estate
asset valuations, which may limit our ability to dispose of assets
at attractive prices or obtain or maintain debt financing;
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, developed and redeveloped
properties; the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts;
delays or refusals in obtaining all necessary zoning, land use and
other required entitlements, governmental permits and
authorizations for our development and redevelopment properties;
increases in anticipated capital expenditures, tenant improvement
and/or leasing costs; defaults on leases for land on which some of
our properties are located; adverse changes to, or implementations
of, applicable laws, regulations or legislation; risks associated
with joint venture investments, including our lack of sole
decision-making authority, our reliance on co-venturers’ financial
condition and disputes between us and our co-venturers;
environmental uncertainties and risks related to natural disasters;
and our ability to maintain our status as a REIT. 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, in our other filings with the Securities
and Exchange Commission and in the prospectus supplement and
related prospectus for this offering. 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/20170110006368/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)
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