Duke Realty Announces Pricing Terms for $350 Million Senior Unsecured Notes Offering
June 22 2020 - 7:24PM
Duke Realty Corporation (NYSE: DRE), a leading industrial property
REIT, announced today that its operating partnership, Duke Realty
Limited Partnership (the “Operating Partnership”), has priced an
underwritten public offering of $350 million of its 1.750% senior
unsecured notes due July 1, 2030. The notes were priced at 99.072%
of their face amount to yield 1.852% to maturity. The offering is
expected to close on June 29, 2020, subject to customary closing
conditions.
The Operating Partnership intends to use the net
proceeds from this offering to repurchase the Company's 3.875%
Senior Notes due 2022 pursuant to the previously announced tender
offer. Any remaining net proceeds from this offering will be used
for general corporate purposes, including to repay borrowings
outstanding on our unsecured senior line of credit. In the
short term, the net proceeds of the sale of the notes may be held
in cash and cash equivalents.
Citigroup Global Markets Inc., J.P. Morgan
Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC, Scotia
Capital (USA) Inc., and SunTrust Robinson Humphrey, Inc. acted as
joint book-running managers for the offering. Barclays Capital
Inc., RBC Capital Markets, LLC, Regions Securities LLC, Samuel A.
Ramirez & Company, Inc., UBS Securities LLC, U.S. Bancorp
Investments, Inc., and Wells Fargo Securities, LLC acted as
co-managers.
Duke Realty and the Operating Partnership have
filed a registration statement (including a preliminary prospectus
supplement and a prospectus) with the U.S. Securities and Exchange
Commission (“SEC”) for the offering to which this communication
relates, which became effective upon filing with the SEC. The
offering will be made only by means of a prospectus and prospectus
supplement. You may obtain these documents for free by searching
the SEC online database on the SEC website at http://www.sec.gov.
Alternatively, Duke Realty, the Operating Partnership, or any
underwriter participating in the offering will arrange to send you
the prospectus supplement and prospectus if you request it from (i)
Citigroup Global Markets Inc. toll free at 1-800-831-9146, (ii)
J.P. Morgan Securities LLC collect at 1-212-834-4533, or (iii)
Morgan Stanley & Co. LLC toll free at 1-866-718-1649.
Before making an investment in the securities,
potential investors should read the prospectus supplement, the
accompanying prospectus and the other documents that the Operating
Partnership has filed and will file with the SEC for more complete
information about the Operating Partnership and the offering.
This news release does not constitute an offer
to sell or the solicitation of an offer to buy any securities in
any jurisdiction to any person to whom it is unlawful to make such
offer or solicitation in such jurisdiction.
About Duke Realty
Corporation
Duke Realty Corporation owns and operates
approximately 156 million rentable square feet of industrial assets
in 20 major U.S. logistics markets. Duke Realty Corporation
is publicly traded on the NYSE under the symbol DRE and is included
in the S&P 500 Index.
Cautionary Notice Regarding
Forward-Looking Statements
This news release may contain forward-looking
statements within the meaning of the federal securities laws.
All statements, other than statements of historical facts,
including, among others, statements regarding the company’s
intended use of proceeds from the offering noted above, future
financial position or results, future dividends, and future
performance, are forward-looking statements. Those statements
include statements regarding the intent, belief, or current
expectations of the company, members of its management team, as
well as the assumptions on which such statements are based, and
generally are identified by the use of words such as "may," "will,"
"seeks," "anticipates," "believes," "estimates," "expects,"
"plans," "intends," "should," or similar expressions, although not
all forward-looking statements may contain such words.
Forward-looking statements are not guarantees of future events or
performance and involve risks and uncertainties that actual results
may differ materially from those contemplated by such
forward-looking statements. Many of these factors are beyond the
company’s abilities to control or predict. Such factors include,
but are not limited to, (i) general adverse economic and local real
estate conditions; (ii) the inability of major tenants to continue
paying their rent obligations due to bankruptcy, insolvency, or a
general downturn in their business; (iii) financing risks, such as
the inability to obtain equity, debt, or other sources of financing
or refinancing on favorable terms, if at all; (iv) the company’s
ability to raise capital by selling its assets; (v) changes in
governmental laws and regulations; (vi) the level and volatility of
interest rates and foreign currency exchange rates; (vii) valuation
of joint venture investments; (viii) valuation of marketable
securities and other investments; (ix) valuation of real estate;
(x) increases in operating costs; (xi) changes in the dividend
policy for the company’s common stock; (xii) the reduction in the
company’s income in the event of multiple lease terminations by
tenants; (xiii) impairment charges, (xiv) the effects of
geopolitical instability and risks such as terrorist attacks and
trade wars; (xv) the effects of natural disasters, including the
current pandemic caused by COVID-19, as well as floods, droughts,
wind, tornados, and hurricanes; and (xvi) the effect of any damage
to our reputation resulting from developments relating to any of
items (i) – (xv). Additional information concerning factors that
could cause actual results to differ materially from those
forward-looking statements is contained from time to time in the
company's filings with the Securities and Exchange
Commission. The company refers you to the section entitled
“Risk Factors” contained in the company's Annual Report on Form
10-K for the year ended December 31, 2019 and the company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
Copies of each filing may be obtained from the company or the
Securities and Exchange Commission.
The risks included here are not exhaustive and
undue reliance should not be placed on any forward-looking
statements, which are based on current expectations. All written
and oral forward-looking statements attributable to the company,
its management, or persons acting on their behalf are qualified in
their entirety by these cautionary statements. Further,
forward-looking statements speak only as of the date they are made,
and the company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time unless otherwise required by law.
Contact
Information:
Investors:Ron Hubbard317.808.6060
Media:Helen McCarthy317.708.8010
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