The Company upsizes, extends term and lowers pricing on its credit
line
LOS ANGELES -- (Business Wire)
Kilroy Realty Corporation (NYSE:KRC) today announced that its operating
partnership, Kilroy Realty, L.P., completed an amendment (the
“Amendment”) to its $500 million unsecured credit facility and $150
million term loan facility, together, “the Facility.” The Amendment
reduced the borrowing costs and extended the maturity date to July 1,
2019 on the Facility and increased the unsecured credit facility size to
$600 million. The unsecured credit facility now bears interest at LIBOR
plus 1.25% and includes a 25 basis point facility fee. The term loan
facility now bears interest at LIBOR plus 1.40%. The interest rates and
facility fee vary depending upon the company's credit ratings.
Additionally, the company may elect to borrow, subject to the banks’
approval, up to an additional $350 million under the Facility. Kilroy
Realty, L.P. expects to use the Facility for general corporate purposes,
including funding its acquisition, development and redevelopment
programs, and repaying long-term debt. The Facility was syndicated to a
group of 13 U.S. and international banks led by J.P. Morgan Securities
LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo
Securities, LLC which acted as joint lead arrangers and joint
bookrunners.
JP Morgan Chase Bank, N.A. will be the administrative agent for the
Facility and Bank of America, N.A. and Wells Fargo Bank, National
Association were the syndication agents. Barclays Bank PLC, Compass
Bank, PNC Bank, National Association, Royal Bank of Canada, Union Bank,
N.A. and U.S. Bank National Association acted as joint documentation
agents. Other participants in the Facility include Bank of the West,
N.A., Comerica Bank, KeyBank, National Association and Sumitomo Mitsui
Banking Corporation.
About Kilroy Realty Corporation. With more than 65 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 roster of dynamic, innovation-driven tenants,
including technology, entertainment, digital media and health care
companies.
At March 31, 2014, the company’s stabilized portfolio totaled 13.3
million square feet of office properties, all located in the coastal
regions of greater Seattle, the San Francisco Bay Area, Los Angeles,
Orange County and San Diego. 41% of the company’s properties were LEED
certified and 55% of the eligible properties were ENERGY STAR certified.
In addition, KRC has approximately 2.5 million square feet of new office
development under construction with a total estimated investment of
approximately $1.5 billion. More information is available at http://www.kilroyrealty.com.
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: investment in real
estate assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and rental
rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. 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, 2013
and our other filings with the Securities and Exchange Commission. 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.
Contacts:
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
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