LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC)announced that it
has priced its public offering of 3,850,000 shares of its common stock
at $72.75 per share (before underwriting discounts and commissions). The
offering is expected to close on or about January 10, 2017, subject to
customary closing conditions. The underwriters for the public offering
have been granted a 30-day option to purchase up to an additional
577,500 shares of common stock. BofA Merrill Lynch, J.P. Morgan,
Barclays, Jefferies and Wells Fargo Securities are acting as joint
book-running managers, KeyBanc Capital Markets, RBC Capital Markets and
US Bancorp are acting as senior co-managers and BBVA, BNP PARIBAS,
Comerica Securities, MUFG and SMBC Nikko are acting as co-managers of
the offering. The estimated net proceeds from the offering are expected
to be approximately $268.5 million (after deducting underwriting
discounts and commissions and estimated offering expenses payable by the
Company), before giving effect to any purchase by the underwriters of
additional shares.
The Company intends to use the net proceeds from the offering for
general corporate purposes, which may include partially funding the
Company’s previously announced special cash dividend, funding
development projects, acquiring land and properties and repaying
outstanding indebtedness, which may include borrowings, if any, under
the operating partnership’s revolving credit facility and borrowings
under the operating partnership’s term loan facilities. Pending
application of the net proceeds for those purposes, the operating
partnership may temporarily invest such proceeds in marketable
securities.
This offering is being made pursuant to an effective shelf registration
statement and prospectus and related prospectus supplement filed by the
Company with the Securities and Exchange Commission. 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 prior to registration or qualification under
the securities laws of any such jurisdiction.
When available, copies of the prospectus supplement and related
prospectus for this offering may be obtained by contacting BofA Merrill
Lynch, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte,
North Carolina 28255-0001, Attention: Prospectus Department or email: dg.prospectus_requests@baml.com;
J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, New York 11717, telephone: (866) 803-9204; Barclays,
c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood,
New York 11717, telephone: (888) 603-5847 or email: barclaysprospectus@broadridge.com;
Jefferies, Attention: Equity Syndicate Prospectus Department, 520
Madison Avenue, 2nd Floor, New York, New York 10022, telephone: (877)
821-7388; or Wells Fargo Securities, Attention: Equity Syndicate
Department, 375 Park Avenue, New York, New York 10152, telephone: (800)
326-5897 or email: cmclientsupport@wellsfargo.com.
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 nearly 70
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 September 30, 2016, Kilroy Realty Corporation’s
stabilized portfolio totaled approximately 13.6 million square feet of
office properties and 200 residential units.
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 generally, and specifically, in the States of
California and Washington; investment in our real estate assets, which
are illiquid; trends in the real estate industry; defaults on or
non-renewal of leases by tenants; any significant downturn in tenants’
businesses; our ability to re-lease property at or above current market
rates; costs to comply with government regulations, including
environmental remediations; 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; failure of interest rate hedging contracts to perform as
expected and the effectiveness of such arrangements; 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; 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. 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, in our other filings with the Securities
and Exchange Commission and in the prospectus supplement and related
prospectus for this offering. 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/20170104006564/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