LOS ANGELES - Kilroy Realty Corporation (NYSE: NYSE:KRC) has successfully amended and extended its senior unsecured revolving credit facility, now allowing for borrowings of up to $1.1 billion through July 31, 2028, before extension options.
The real estate investment trust, which specializes in office, life science, and mixed-use projects, announced the three-year extension of the facility's term, maintaining the same borrowing capacity.
Angela Aman, CEO of Kilroy Realty, expressed satisfaction with the recast of the credit facility, highlighting the company's ability to maintain its borrowing capacity while extending the facility's maturity. She emphasized the importance of banking partnerships in providing Kilroy with liquidity and financial flexibility to pursue growth opportunities and deliver value to stakeholders.
The revised credit facility includes a sustainability-linked pricing feature that could potentially lower the borrowing cost if the company achieves certain sustainability performance targets, as confirmed by an independent third party.
Moreover, Kilroy has the option to increase the facility by up to $500 million through an accordion feature, subject to lender commitments and certain conditions. The company plans to use the facility for general corporate purposes, including funding acquisitions, development, and redevelopment projects, and repaying debt.
The credit facility was syndicated by a consortium of twelve U.S. and international banks, with JPMorgan Chase (NYSE:JPM) Bank, N.A., BofA Securities, Inc., and Wells Fargo Securities, LLC taking the lead roles.
In conjunction with the credit facility update, Kilroy also paid down $200 million of its existing $520 million senior unsecured term loan and extended the maturity of the remaining $320 million by 12 months to October 3, 2027. The borrowing rate for the new term loan remains unchanged at one-month Adjusted SOFR plus 95 basis points.
Kilroy Realty Corporation, a member of the S&P MidCap 400 Index, is recognized for its sustainable and innovative building operations. The company has been carbon neutral since 2020 and is committed to maintaining high levels of LEED, Fitwel, and ENERGY STAR certifications across its portfolio.
This financial restructuring is based on a press release statement and is meant to provide Kilroy Realty with the necessary resources to support its ongoing and future projects while aligning with its sustainability goals.
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