LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) today announced that
its operating partnership, Kilroy Realty, L.P., will redeem all $250.0
million aggregate principal amount of its outstanding 6.625% Senior
Notes due June 1, 2020 (CUSIP No. 49427RAF9) (the “Notes”). The
redemption date for the Notes will be December 14, 2018 (the “Redemption
Date”). The redemption price will equal 100% of the principal amount of
the Notes to be redeemed and a make-whole premium calculated in
accordance with the indenture governing the Notes plus accrued and
unpaid interest thereon to the Redemption Date.
In connection with the redemption of the Notes, the Company expects to
record a loss from early extinguishment of debt of approximately $12.5
million to Net Income and Funds From Operations in the fourth quarter of
2018. The loss from early extinguishment of debt was not previously
reflected in the Company’s third quarter guidance estimates for full
year 2018.
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 over 70 years,
Kilroy Realty Corporation has owned, developed, acquired and managed
real estate assets primarily in the coastal regions of Greater Los
Angeles, Orange County, San Diego, the San Francisco Bay Area and
Greater Seattle. At September 30, 2018, Kilroy Realty Corporation’s
stabilized portfolio totaled approximately 13.9 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
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 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181114005901/en/
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