LOS ANGELES, September 23, 2021– (BUSINESS WIRE) – Kilroy Realty Corporation (NYSE: KRC) today announced that its operating partnership, Kilroy Realty, LP, will repay the entire $ 300.0 million total principal amount of its promissory notes. first ranking at 3.800% outstanding due January 15, 2023 (CUSIP no. 49427RAJ1) (the “Notes”). The redemption date for the Notes will be October 25, 2021 (the “Redemption Date”). The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed and to a compensation amount calculated in accordance with the act governing the Notes plus accrued and unpaid interest on the Redemption Date.
In connection with the repayment of the Notes, the Company expects to record a loss resulting from the early extinguishment of debt of approximately $ 13.7 million on net income and funds from operations in the fourth quarter. 2021. The loss resulting from the early extinguishment of debt had not previously been reflected. in the Company’s forecast estimates for the second quarter of fiscal 2021.
The US Bank National Association, in its capacity as Trustee and Paying Agent, is mailing a Redemption Notice to all registered holders of the Notes. Additional information regarding the redemption process can be obtained by calling the US Bank National Association at (800) 934-6802.
About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and a member of the S&P MidCap 400 Index, is a leading U.S. owner and developer with a presence in San Diego, Greater Los Angeles, in the Greater Los Angeles area. San Francisco Bay, in the Pacific Northwest. and Austin, Texas. The Company has more than seven decades of experience in the development, acquisition and management of office, life sciences and mixed-use real estate assets. The Company provides physical work environments designed to foster creativity and productivity and serves a broad roster of dynamic and innovation-driven tenants, including technology, entertainment, digital media and healthcare companies.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are beyond our control. Therefore, actual performance, results and events may differ materially from those indicated or implied in forward-looking statements, and you should not rely on forward-looking statements as predictions of performance, results or events. future. Many factors could cause actual performance, results and future events to differ materially from those indicated in forward-looking statements, including, but not limited to: global market and general economic conditions and their effect on our liquidity and our financial conditions and those of our tenants; unfavorable economic or real estate conditions in general, and more particularly in the States of California, Texas and Washington; risks associated with our investment in real estate assets, which are illiquid, and trends in the real estate industry; default or non-renewal of leases by tenants; any significant slowdown in tenant activities; our ability to re-let properties at current market rates or above; the costs of complying with government regulations, including environmental remediation; the availability of liquidity for the distribution and servicing of debt and exposure to the risk of default on debt obligations; increases in interest rates and our ability to manage exposure to interest rates; the availability of financing on attractive terms or not at all, which may have a negative impact on our future interest charges and our ability to pursue development, redevelopment and acquisition opportunities and to refinance existing debt; a decline in the valuations of real estate assets, which may limit our ability to sell assets at attractive prices or obtain or maintain debt financing, and which may result in write-offs or impairment charges; significant competition, which can decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to complete acquisitions and divestitures on the terms announced; the ability to successfully operate the properties acquired, developed and redeveloped; the ability to complete development and redevelopment projects on time and within budgeted amounts; delays or denials in obtaining all required zoning, land use and other rights, permits and government approvals for our development and redevelopment properties; increases in planned capital expenditures, leasehold improvements and / or rental costs; defaults on land leases on which some of our properties are located; adverse changes, promulgation or implementation of tax laws or other applicable laws, regulations or legislation, as well as the reactions of businesses and consumers to such changes; risks associated with investing in joint ventures, including our lack of exclusive decision-making authority, our reliance on the financial condition of the venturers and disputes between us and our venturers; environmental uncertainties and risks associated with natural disasters; our ability to maintain our REIT status; and uncertainties about the impact of the COVID-19 pandemic, and the restrictions to prevent its spread, on our business and the economy in general. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. For a discussion of additional factors that could have a material adverse effect on our business and financial performance, see the factors included under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31. 2020 and our other documents filed with the Securities and Exchange Commission. All forward-looking statements are based on information currently available and speak only as of the dates on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes false due to subsequent events, new information or otherwise, except to the extent that we are required to do so in connection with our ongoing requirements under federal securities laws.
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Tyler H. Rose
Senior Vice President
Financial Director and Treasurer