Kilroy Realty (KRC) To Offer 5.5M Shares

Kilroy Realty Corporation (NYSE: KRC) commenced a public offering of 5,500,000 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 825,000 additional shares of common stock to cover overallotments, if any.

BofA Merrill Lynch, Barclays Capital and J.P. Morgan will act as 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 plans to use some or all of the net proceeds from the offering to finance a portion of the approximately $237 million purchase price of an office building and attached parking structure in San Francisco, California; and, to the extent any net proceeds remain after the purchase price of the office building in San Francisco is paid or if the acquisition of the office building is not consummated, for other general corporate purposes, which may include repaying borrowings under the company’s unsecured revolving credit facility, the redemption or other repurchase of outstanding debt securities of the operating partnership and potential future acquisitions. Pending application for the foregoing purposes, the company plans to use the net proceeds to temporarily repay borrowings outstanding under the credit facility.