By Andrea Heisinger
New York, June 27 - Kilroy Realty LP priced an upsized $325 million offering of 4.8% seven-year senior notes on Monday to yield 265 basis points over Treasuries, a source close to the deal said.
The sale size was initially $250 million, a source said. The notes priced at the tight end of guidance in the 270 bps area.
The notes (Baa3/BBB-/) were priced at 99.839 to yield 4.827%.
The notes have a make-whole call at 40 bps over Treasuries until May 15, 2018 and after that date at par.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities International plc, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Capital Markets Ltd. were the co-managers.
Proceeds are being used for general corporate purposes, including acquisition of properties or repayment of outstanding debt, including borrowings under an unsecured revolving credit facility.
The notes are guaranteed by parent company and real estate investment trust Kilroy Realty Corp., based in Los Angeles.
| Issuer: | Kilroy Realty LP
|
| Guarantor: | Kilroy Realty Corp.
|
| Issue: | Senior notes
|
| Amount: | $325 million, increased from $250 million
|
| Maturity: | July 15, 2018
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities International plc, RBC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 4.8%
|
| Price: | 99.839
|
| Yield: | 4.827%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until May 15, 2018, after at par
|
| Trade date: | June 27
|
| Settlement date: | July 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 270 bps area
|
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