Duke Realty Announces Results of Tender Offer for 3.875% Senior Notes Due 2022
June 29 2020 - 4:43PM
Duke Realty Corporation (NYSE: DRE), a leading industrial property
REIT, announced today the closing of the previously announced cash
tender offer (the “Tender Offer”) by Duke Realty Limited
Partnership (the “Operating Partnership”), its operating
partnership, to purchase any and all of the outstanding 3.875%
Senior Notes due 2022 (the “Notes”) issued by the Operating
Partnership. The Tender Offer expired at 5:00 p.m., New York City
time, on June 26, 2020 (the “Expiration Time”). The complete terms
and conditions of the Tender Offer were set forth in an Offer to
Purchase, dated June 22, 2020 (the “Offer to Purchase”), and the
related Notice of Guaranteed Delivery.
As of the Expiration Time, $216,260,000
aggregate principal amount of Notes had been validly tendered and
not validly withdrawn. This amount excludes $1,050,000 aggregate
principal amount of the Notes expected to be tendered pursuant to
the guaranteed delivery procedures described in the Offer to
Purchase. Notes tendered pursuant to the guaranteed delivery
procedures must be provided no later than 5:00 p.m., New York City
time, on June 30, 2020.
The Operating Partnership has accepted for
payment all the Notes validly tendered and not validly withdrawn
prior to the Expiration Time and, in accordance with the terms of
the Offer to Purchase, has paid all holders of such Notes $1,065.00
per $1,000 principal amount of Notes tendered plus accrued and
unpaid interest from the last interest payment date to, but not
including, today, June 29, 2020 (the “Payment Date”). The
Company intends to accept for payment all of the Notes that are
tendered pursuant to the guaranteed delivery procedures. Payment
for Notes validly tendered pursuant to the guaranteed delivery
procedures is expected to be made on July 1, 2020, as described in
the Offer to Purchase.
The Operating Partnership funded the purchase of
the Notes with the net proceeds from its previously announced
issuance and sale of $350 million aggregate principal amount of its
1.750% Senior Notes due 2030. Citigroup Global Markets Inc. and
J.P. Morgan Securities LLC acted as dealer managers for the Tender
Offer. D.F. King & Co., Inc. was the information agent and
tender agent for the Tender Offer.
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 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, including the aggregate principal
amount of notes tendered through guaranteed delivery procedures.
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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