LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) today announced that
its operating partnership, Kilroy Realty, L.P., amended and restated its
unsecured revolving credit facility and term loan facility (together,
the “Facility”). The amendment and restatement increased the size of the
revolver from $600 million to $750 million, maintained the size of the
term loan of $150 million, reduced the borrowing costs and extended the
maturity date of the Facility to July 2022. The revolver now bears
interest at LIBOR plus 1.00% and includes a 20 basis point facility fee.
The term loan features two, six-month delay draw options, now bears
interest at LIBOR plus 1.10% and includes a 20 basis point facility fee
on undrawn commitments. The interest rates and facility fees vary
depending upon Kilroy Realty, L.P.’s credit ratings. Additionally,
Kilroy Realty, L.P. may elect to borrow, subject to additional lender
commitments and the satisfaction of certain conditions, up to an
additional $600 million under the Facility for a maximum borrowing
capacity of $1.5 billion. The Facility was undrawn at closing, including
the $150 million term loan, which was repaid in full at closing with
available cash.
Kilroy Realty, L.P. expects to use the Facility for general corporate
purposes, including funding its development and redevelopment programs,
opportunistic acquisitions and repaying long-term debt. In addition,
concurrently with the closing of the Facility, Kilroy Realty, L.P.
repaid in full its $39 million unsecured term loan with available cash.
The Facility was syndicated to a group of 15 U.S. and international
banks led by J.P. Morgan Chase Bank, N.A., Merrill Lynch, Pierce, Fenner
& Smith Incorporated and Wells Fargo Securities, LLC, which acted as
joint lead arrangers and joint bookrunners. JPMorgan Chase Bank, N.A. is
the administrative agent for the Facility, and Bank of America, N.A. was
the syndication agent. PNC Capital Markets, LLC and U.S. Bank National
Association acted as joint lead arrangers. Wells Fargo Bank, N.A., PNC
Bank, National Association, U.S. Bank National Association, Bank of the
West, Barclays Bank PLC, Compass Bank, MUFG Union Bank, N.A., Royal Bank
of Canada and Sumitomo Mitsui Banking Corporation acted as
co-documentation agents. Other participants in the Facility include
Citibank, N.A., Comerica Bank, KeyBank National Association and The Bank
of Nova Scotia.
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 the forward-looking
statements, and you should not rely on the 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 the forward-looking statements,
including, among others: 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; risks
associated with our investment in real estate assets, which are
illiquid, and with 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 remediation; 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; 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 and
additional factors could adversely affect our business and financial
performance. 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 currently available information, 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 we are required to do so in connection with our
ongoing requirements under federal securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170726006357/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