Kilroy Realty Corporation (NYSE: KRC) today announced that
it has commenced a public offering of 6,000,000 shares of common stock.
In addition, the company expects to grant to the underwriters for the
public offering a 30-day option to purchase up to 900,000 additional
shares of common stock to cover overallotments, if any. Merrill Lynch &
Co. and J.P.Morgan will serve as the joint book-running managers.
The company plans to contribute the net proceeds from the offering to
Kilroy Realty, L.P., the company’s operating partnership. The operating
partnership will subsequently use the net proceeds to repay a portion of
the borrowings under its unsecured revolving credit facility. The
company intends to reborrow amounts under the unsecured revolving credit
facility from time to time for general corporate purposes, including
potentially for the repayment of long-term debt.
This offering is being made pursuant to an effective shelf registration
statement and prospectus filed by Kilroy Realty Corporation with the
Securities and Exchange Commission. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy any
securities nor will there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction.
When available, copies of the prospectus supplement and related
prospectus for this offering may be obtained by contacting Merrill Lynch
& Co., 4 World Financial Center, New York, NY 10080, Attention:
Prospectus Department, telephone: 212-449-1000, or J.P.Morgan, 4 Chase
Metrotech Center, CS Level, Brooklyn, NY 11245, Attention: Prospectus
Library, telephone: 718-242-8002.
Some of the information presented in this release is forward looking in
nature within the meaning of the Private Securities Litigation Reform
Act of 1995, including statements related to the offering and the
anticipated use of the net proceeds. Although Kilroy Realty Corporation
believes the expectations reflected in such forward-looking statements
are based on reasonable assumptions, there can be no assurance that its
expectations will be achieved. Certain factors that could cause actual
results to differ materially from Kilroy Realty's expectations are set
forth as risk factors in the company's Securities and Exchange
Commission reports and filings. Included among these factors are changes
in general economic conditions, including changes in the economic
conditions affecting industries in which its principal tenants compete;
Kilroy Realty's ability to timely lease or re-lease space at current or
anticipated rents; changes in interest rates; changes in operating
costs, including utility costs; future demand for its debt and equity
securities; its ability to refinance its debt on reasonable terms at
maturity; its ability to complete current and future development
projects on schedule and on budget; the demand for office space in
markets in which Kilroy Realty has a presence; and risks detailed from
time to time in the company's Securities and Exchange Commission
reports, including quarterly reports on Form 10-Q, current reports on
Form 8-K and annual reports on Form 10-K. Many of these factors are
beyond Kilroy Realty's ability to control or predict. Forward-looking
statements are not guarantees of performance. For forward-looking
statements herein, Kilroy Realty claims the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. The company assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a
Southern California-based real estate investment trust active in the
office and industrial property sectors. For over 60 years, the company
has owned, developed, acquired and managed real estate assets primarily
in the coastal regions of Los Angeles, Orange and San Diego counties. At
March 31, 2009, the company owned 8.6 million rentable square feet of
commercial office space and 3.7 million rentable square feet of
industrial space.
