LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE:KRC) today announced that
its operating partnership, Kilroy Realty, L.P., has priced an
underwritten public offering of $400 million aggregate principal amount
of its 4.375% senior unsecured notes due 2025 (the “Notes”). The Notes
will pay interest semi-annually at a rate of 4.375% per annum and mature
on October 1, 2025. The Notes were priced at 99.444% of the principal
amount. The offering is expected to close on September 16, 2015, subject
to customary closing conditions. BofA Merrill Lynch, Barclays, J.P.
Morgan and Wells Fargo Securities acted as joint book-running managers.
Net proceeds from the offering will be approximately $394.5 million,
after deducting underwriting discounts and our estimated expenses. We
intend to use the net proceeds from the offering to refinance the
operating partnership’s 5.0% senior notes due 2015 and for general
corporate purposes, which may include acquiring land and properties,
funding development projects and repaying other outstanding
indebtedness. Pending application of the net proceeds for those
purposes, we may use the net proceeds from the offering to repay
borrowings under the operating partnership’s revolving credit facility
and/or temporarily invest such net proceeds in marketable securities.
The Notes are being offered pursuant to an effective shelf registration
statement filed by Kilroy Realty Corporation and Kilroy Realty, L.P.
with the Securities and Exchange Commission (“SEC”). The offering will
be made only by means of the prospectus supplement and accompanying
prospectus. The preliminary prospectus supplement and accompanying
prospectus related to the offering has been filed with the SEC and is
available on the SEC’s website at http://www.sec.gov.
A copy of the final prospectus supplement and accompanying prospectus
related to the offering may be obtained, when available, by calling
Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at (800)
294-1322 or by email to dg.prospectus_requests@baml.com;
by calling Barclays Capital Inc. toll-free at (888) 603-5847 or by email
to barclaysprospectus@broadridge.com;
by calling J.P. Morgan Securities LLC collect at (212) 834-4533; or by
calling Wells Fargo Securities, LLC toll-free at (800) 645-3751 or by
email to wfscustomerservice@wellsfargo.com.
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.
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 over 65 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 June 30, 2015, Kilroy Realty Corporation’s stabilized
portfolio totaled approximately 13.1 million square feet of office
properties.
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 in California and Washington, including any recurrence
of California’s budget deficits; investment in real estate assets, which
are illiquid, and trends in the real estate industry; defaults on or
non-renewal of leases by tenants; any significant downturn in our
tenants’ businesses; our ability to re-lease property at or above
current market rates; costs to comply with government regulations,
including environmental remediation; the availability of cash for
distribution and debt service and exposure to risk of default under debt
obligations; 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 properties; the ability to successfully complete development
and redevelopment projects on schedule and within budgeted amounts;
defaults on leases for land on which some of our properties are located;
adverse changes to, or implementations of, applicable laws, regulations
or legislation; environmental uncertainties and risks related to natural
disasters; and our ability to maintain our status as a real estate
investment trust. 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, 2014, the preliminary prospectus supplement and prospectus
for this offering 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/20150909006704/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President
and Chief Financial Officer
(310) 481-8484
or
Michelle
Ngo
Senior Vice President
and Treasurer
(310) 481-8581
Source: Kilroy Realty Corporation