Published on 9/9/2015 in the Prospect News Investment Grade Daily.
New Issue: Kilroy sells upsized $400 million 4.375% notes due 2025 at Treasuries plus 225 bps
By Aleesia Forni
Virginia Beach, Sept. 9 – Kilroy Realty, LP sold an upsized $400 million of issue of 4.375% senior notes (Baa2/BBB) due Oct. 1, 2025 on Wednesday at Treasuries plus 225 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at the tight end of guidance set in the 230 bps area over Treasuries, and the notes were issued at a price of 99.444 to yield 4.444%.
The deal was upsized from $325 million.
BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Kilroy plans to use the proceeds from the offering to refinance the operating partnership’s 5% senior notes due 2015 and for general corporate purposes, which may include acquiring land and properties, funding development projects and repaying other outstanding debt.
The notes will be guaranteed by Kilroy Realty Corp.
Kilroy is a Los Angeles-based real estate investment trust.
| Issuer: | Kilroy Realty LP
|
| Guarantor: | Kilroy Realty Corp.
|
| Amount: | $400 million, upsized from $325 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 1, 2025
|
| Bookrunners: | BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Jefferies LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | KeyBanc Capital Markets Inc., Stifel, Nicolaus & Co., Inc.
|
| Coupon: | 4.375%
|
| Price: | 99.444
|
| Yield: | 4.444%
|
| Spread: | Treasuries plus 225 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to July 1, 2025, then callable at par
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 230 bps area
|
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