Kilroy Realty lifts credit facility, extends maturity, trims pricing

By Marisa Wong

Madison, Wis., June 23 – Kilroy Realty Corp. said its operating partnership, Kilroy Realty, LP, amended its $500 million unsecured credit facility and $150 million term loan facility to reduce the borrowing costs and extended the maturity date to July 1, 2019.

The amendment also increases the size of the unsecured credit facility to $600 million, according to a press release.

The unsecured credit facility now bears interest at Libor plus 125 basis points and includes a 25 bps facility fee. The term loan now bears interest at Libor plus 140 bps. Pricing is based on the company’s credit ratings.

Additionally, the company may elect to borrow up to an additional $350 million under the entire facility.

The operating partnership 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 Inc. and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners.

JPMorgan Chase Bank, NA will be the administrative agent for the facility, and Bank of America, NA and Wells Fargo Bank, NA were the syndication agents. Barclays Bank plc, Compass Bank, PNC Bank, NA, Royal Bank of Canada, Union Bank, NA and U.S. Bank NA acted as joint documentation agents. Other participants include Bank of the West, NA, Comerica Bank, KeyBank, NA and Sumitomo Mitsui Banking Corp.

Kilroy is a real estate investment trust based in Los Angeles.

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