Kilroy Realty Corporation to Redeem All Outstanding Shares of 6.875% Series G Cumulative Redeemable Preferred Stock
February 28 2017 - 4:26PM
Business Wire
Kilroy Realty Corporation (NYSE: KRC) today announced
that it intends to redeem all 4,000,000 outstanding shares of its
6.875% Series G Cumulative Redeemable Preferred Stock (“Series G
Preferred Stock”) (CUSIP No. 49427F702). All shares of Series G
Preferred Stock will be redeemed in accordance with the applicable
procedures of the Depository Trust Company.
The redemption date will be March 30, 2017. The shares of Series
G Preferred Stock will be redeemed at a redemption price of $25.00
per share, plus accumulated and unpaid dividends up to but
excluding the redemption date in an amount equal to $0.21 per
share, for a total payment of $25.21 per share. Dividends on the
shares of Series G Preferred Stock will cease to accrue on the
redemption date, such shares shall no longer be deemed outstanding
and all rights of the holders of such shares will terminate, except
the right to receive payment of the redemption price, plus
accumulated and unpaid dividends up to but excluding the redemption
date. Trading of the shares of Series G Preferred Stock on the New
York Stock Exchange (NYSE: KRC-PG) will cease after the redemption
date.
In conjunction with the redemption of all of the Series G
Cumulative Redeemable Preferred Stock, the Company will incur a
one-time, non-cash charge related to the write off of the original
issuance costs of approximately $3.8 million, or $0.04 per share,
in the first quarter of 2017.
The notice of redemption was sent today to Depository Trust
Company as the sole holder of record of the shares of Series G
Preferred Stock. The Company’s transfer agent is Computershare,
Inc., attention: Corporate Actions, at 250 Royall Street, Canton,
Massachusetts 02021. Questions regarding the redemption of the
shares of Series G Preferred Stock may be directed to
Computershare, Inc. at (800) 546-5141.
About Kilroy Realty Corporation. With approximately 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: 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 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 release 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, and
which may result in write-offs or impairment charges; 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, 2016 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/20170228006837/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice President
and Chief Financial Officer(310) 481-8484orMichelle NgoSenior Vice
President and Treasurer(310) 481-8581
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