By Devika Patel and Cristal Cody
Knoxville, Tenn., Sept. 23 – Kilroy Realty LP priced an upsized $450 million of 2.65% green senior notes due Nov. 15, 2033 (Baa2/BBB) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.957 to yield 2.654%, with a spread of Treasuries plus 125 basis points.
The notes were talked to yield in the 140 bps to 145 bps area over Treasuries with $350 million of notes expected.
The notes are guaranteed by Kilroy Realty Corp.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp. and U.S. Bancorp Investments Inc. were the joint bookrunners.
Kilroy intends to allocate some of the proceeds to Kilroy Oyster Point (Phase 1), an office and life science development project in South San Francisco, which it expects to receive LEED Gold certification and to qualify as an eligible green project. However, the company may choose to allocate or reallocate some or all of the proceeds to one or more other eligible green projects.
Kilroy is a Los Angeles-based real estate investment trust that manages properties in the coastal regions of Greater Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle.
| Issuer: | Kilroy Realty LP
|
| Guarantor: | Kilroy Realty Corp.
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| Description: | Green senior notes
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| Amount: | $450 million
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| Maturity: | Nov. 15, 2033
|
| Bookrunners: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp. and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | Citigroup Global Markets Inc., KeyBanc Capital Markets Inc., MUFG, Scotia Capital (USA) Inc. and SMBC Nikko Securities America Inc.
|
| Co-managers: | BofA Securities Inc., BNY Mellon Capital Markets LLC, Comerica Securities Inc., PNC Capital Markets LLC and Samuel A. Ramirez & Co. Inc.
|
| Coupon: | 2.65%
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| Price: | 99.957
|
| Yield: | 2.654%
|
| Spread: | Treasuries plus 125 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Aug. 15, 2033, then a par call
|
| Trade date: | Sept. 23
|
| Settlement date: | Oct. 7
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
|
| Distribution: | SEC registered
|
| Guidance: | Treasuries plus 140 bps to 145 bps area
|
| Cusip: | 49427RAR3
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