Company Expects to Issue $175 Million of Notes at 3.35% and $75
Million of Notes at 3.45% by February 17, 2017
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) (the “Company”)
today announced that its operating partnership, Kilroy Realty, L.P. (the
“Operating Partnership”), has agreed to sell $250 million aggregate
principal amount of senior unsecured notes (the “Senior Unsecured
Notes”) in a private placement. The Operating Partnership expects to
issue $175 million principal amount of 3.35% Senior Unsecured Notes
(“Series A”) and $75 million of 3.45% Senior Unsecured Notes (“Series
B”) by February 17, 2017. The Senior Unsecured Notes are guaranteed by
the Company.
Series A will pay interest semi-annually at a rate of 3.35% per annum
and mature on February 17, 2027, and Series B will pay interest
semi-annually at a rate of 3.45% per annum and mature on February 17,
2029. Proceeds from the financing will be used to refinance existing
indebtedness, to redeem preferred stock and for general corporate
purposes.
“We are very pleased with the results of this private placement which
allowed us to raise capital at very attractive rates from a group of
high quality, long-term institutional investors. The delayed drawdown
feature combined with our recently announced joint venture will allow us
to efficiently manage our development expenditures and potential
redemption of our preferred stock in 2017,” said Tyler H. Rose, the
company’s executive vice president and chief financial officer.
The Senior Unsecured Notes have not been and will not be registered
under the U.S. Securities Act of 1933, as amended (the “Act”) or any
state securities laws and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Act and applicable state securities
laws. This press release is for information only, does not constitute an
offer to sell or the solicitation of an offer to buy any security and
shall not constitute an offer, solicitation or sale of any securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
Barclays acted as the sole placement agent for the offering.
About Kilroy Realty Corporation. With almost 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: investment in real
estate assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and rental
rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. 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
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/20160914006441/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