Kilroy Realty, L.P. to Redeem All Outstanding 6.625% Senior Notes Due 2020
November 14 2018 - 4:09PM
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181114005901/en/
Tyler H. RoseExecutive Vice Presidentand Chief Financial
Officer(310) 481-8484orMichelle NgoSenior Vice Presidentand
Treasurer(310) 481-8581
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