Kilroy Realty, L.P. Prices $400.0 Million of 4.25% Senior Unsecured Notes Due 2029

  Kilroy Realty, L.P. Prices $400.0 Million of 4.25% Senior Unsecured Notes
  Due 2029

Business Wire

LOS ANGELES -- July 30, 2014

Kilroy Realty Corporation (NYSE:KRC) today announced that its operating
partnership, Kilroy Realty, L.P., has priced the underwritten public offering
of $400.0 million aggregate principal amount of its 4.25% senior unsecured
notes due 2029 (the “Notes”). The Notes will pay interest semi-annually at a
rate of 4.25% per annum and mature on August 15, 2029. The Notes were priced
at 98.882% of the principal amount. Wells Fargo Securities, Barclays, BofA
Merrill Lynch and J.P. Morgan acted as joint book-running managers. The
offering is expected to close on August 6, 2014, subject to customary closing
conditions.

Net proceeds from the offering will be approximately $391.8 million, after
deducting underwriters’ discounts and estimated expenses. We intend to use the
net proceeds from the offering for general corporate purposes, which may
include acquiring properties, funding development and redevelopment projects,
and repaying outstanding indebtedness. Pending application for the foregoing
purposes, we may use the net proceeds from the offering to repay borrowings
under the operating partnership’s revolving credit facility and/or temporarily
invest such net proceeds in marketable securities.

The offering was made pursuant to an effective shelf registration statement
and prospectus and related prospectus supplement filed by Kilroy Realty
Corporation and Kilroy Realty, L.P. 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.

Copies of the prospectus supplement and related prospectus for the offering
may be obtained by calling Wells Fargo Securities, LLC toll-free at
800-326-5897 or by email to cmclientsupport@wellsfargo.com; by calling
Barclays Capital Inc. toll-free at 888-603-5847 or by email to
barclaysprospectus@broadridge.com; by calling Merrill Lynch, Pierce, Fenner &
Smith Incorporated toll-free at 800-294-1322 or by email to
dg.prospectus_requests@baml.com; or by calling J.P. Morgan Securities LLC
collect at 1-212-834-4533.

Forward-Looking Statements. 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 Kilroy Realty Corporation’s 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 outside of Kilroy Realty Corporation’s
control. Accordingly, actual performance, results and events may vary
materially from those indicated in forward-looking statements, and you should
not rely on forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future performance,
results and events to differ materially from those indicated in
forward-looking statements, including, among others, risks associated with:
investment in real estate assets, which are illiquid; trends in the real
estate industry; significant competition, which may decrease the occupancy and
rental rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. These factors
are not exhaustive. For a discussion of additional factors that could
materially adversely affect Kilroy Realty Corporation’s business and financial
performance, see the factors included under the caption “Risk Factors” in the
prospectus supplement relating to the Notes and Kilroy Realty Corporation’s
annual report on Form 10-K/A for the year ended December 31, 2013 and Kilroy
Realty Corporation’s other filings with the Securities and Exchange
Commission. All forward-looking statements are based on information that was
available, and speak only as of, the date on which they are made. Kilroy
Realty Corporation assumes no obligation to update any forward-looking
statement made in this press release that becomes untrue because of subsequent
events, new information or otherwise, except to the extent required in
connection with ongoing requirements under U.S. securities laws.

Contact:

Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President and Chief Financial Officer
(310) 481-8484
or
Michelle Ngo
Senior Vice President and Treasurer
(310) 481-8581
 
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