Company Expects to Issue $50 Million of Notes at 4.30% and $200
Million of Notes at 4.35% with Three and Six Month Delayed Draw Options,
Respectively
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 due 2026 (the “Senior
Unsecured Notes”) in a private placement. The Operating Partnership
expects to issue $50 million principal amount of 4.30% Senior Unsecured
Notes (“2018 Series A”) by July 20, 2018 and $200 million principal
amount of 4.35% Senior Unsecured Notes (“2018 Series B”) by October 22,
2018. The Senior Unsecured Notes are guaranteed by the Company.
2018 Series A will pay interest semi-annually at a rate of 4.30% per
annum and mature on July 18, 2026 and 2018 Series B will pay interest
semi-annually at a rate of 4.35% per annum and mature on October 18,
2026. Interest payments will be made in arrears on April 18 and October
18 of each year beginning April 18, 2019. Proceeds from the financing
will be used for general corporate purposes, including funding
development projects.
“As part of our active balance sheet management strategy, we continually
evaluate opportunities to raise long-term capital at attractive terms
and the results of this debt financing underscore both objectives. The
delayed drawdown feature, against the backdrop of market volatility,
will allow us to efficiently manage our development expenditures,” said
Tyler H. Rose, the Company’s Executive Vice President and Chief
Financial Officer.
The Senior Unsecured Notes and related guarantee have not been
registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state securities laws and may not be offered or sold in
the United States absent registration under the Securities Act, or
pursuant to an applicable exemption from, or in a transaction not
subject to, the registration requirements of the Securities 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.
About Kilroy Realty Corporation. With over 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 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
implementations of, applicable laws, regulations or legislation, as well
as business and consumer reactions to such changes; 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, 2017 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: https://www.businesswire.com/news/home/20180514006365/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