Kilroy Prices $175 Million Public Offering

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Kilroy Realty Corp. said Friday that it priced a public offering of 8.75 million shares of common stock at $20 per share. The proceeds will be used to pay down debt.

At that price, the Los Angeles real estate investment trust would raise $175 million before expenses. The company plans to provide the net proceeds to its operating partnership, Kilroy Realty L.P., to repay a portion of borrowings under its unsecured revolving credit facility.

The offering is expected to close on June 3. The company said the underwriters have been granted a 30-day option to buy up to about 1.3 million addition shares to cover overallotments. Merrill Lynch & Co. and J.P. Morgan will serve as the joint book-running managers.

At the end of the first quarter, Kilroy owned 8.6 million rentable square feet of commercial office space and 3.7 million rentable square feet of industrial space in Los Angeles, Orange and San Diego counties.

Kilroy shares were down 92 cents, or 4 percent, to $20.90 in midday trading on the New York Stock Exchange.

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