Kilroy Realty, L.P. to Redeem All Outstanding 3.800% Senior Notes Due 2023
September 23 2021 - 4:58PM
Business Wire
Kilroy Realty Corporation (NYSE: KRC) today announced that its
operating partnership, Kilroy Realty, L.P., will redeem all $300.0
million aggregate principal amount of its outstanding 3.800% Senior
Notes due January 15, 2023 (CUSIP No. 49427RAJ1) (the “Notes”). The
redemption date for the Notes will be October 25, 2021 (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.
In connection with the redemption of the Notes, the Company
expects to record a loss from early extinguishment of debt of
approximately $13.7 million to Net Income and Funds From Operations
in the fourth quarter of 2021. The loss from early extinguishment
of debt was not previously reflected in the Company’s second
quarter guidance estimates for full year 2021.
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 (KRC), a publicly traded real estate
investment trust and member of the S&P MidCap 400 Index, is a
leading U.S. landlord and developer, with operations in San Diego,
Greater Los Angeles, the San Francisco Bay Area, the Pacific
Northwest and Austin, Texas. The Company has more than seven
decades of experience developing, acquiring and managing office,
life science and mixed-use real estate assets. The Company provides
physical work environments designed to 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, 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 or implied 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, Texas 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 enactment or
implementations of, tax laws or other 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; our ability to maintain our status as a REIT;
and uncertainties regarding the impact of the COVID-19 pandemic,
and restrictions intended to prevent its spread, on our business
and the economy generally. 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, 2020 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 dates 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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Tyler H. Rose President (310) 481-8484 or Michelle Ngo Senior
Vice President Chief Financial Officer and Treasurer (310)
481-8581
Kilroy Realty (NYSE:KRC)
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