LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation (NYSE:KRC) today announced that its operating
partnership, Kilroy Realty, L.P., will redeem all $325.0 million
aggregate principal amount of its outstanding 4.800% Senior Notes due
July 15, 2018 (CUSIP No. 49427RAH5) (the “Notes”). The redemption date
for the Notes will be December 27, 2017 (the “Redemption Date”). The
redemption price will equal 100% of the principal amount of the Notes to
be redeemed and a make-whole amount calculated in accordance with the
indenture governing the Notes plus accrued and unpaid interest thereon
to the Redemption Date.
As a result of the redemption of all of the Notes, the Company expects
to incur a one-time charge of approximately $5.5 million to Net Income
and Funds From Operations in the fourth quarter of 2017. Neither the
recent offering of $425.0 million aggregate principal amount of the
operating partnership’s 3.450% Senior Notes due 2024 nor the redemption
of the Notes was previously reflected in the Company’s guidance
estimates for full year 2017.
U.S. Bank National Association, as Trustee and Paying Agent, is mailing
a notice of redemption to all registered holders of the Notes.
Additional information relating to the procedure for redemption may be
obtained by calling U.S. Bank National Association at (800) 934-6802.
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, 2017, Kilroy Realty Corporation’s
stabilized portfolio totaled approximately 13.7 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 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 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;
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
enactments or implementations of, tax laws, whether as a result of the
proposed changes currently under consideration by the U.S. Congress or
otherwise, or other 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 in 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.
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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