Kilroy Increases Secondary OfferingWednesday, April 6, 2011
Kilroy Realty Corp. on Wednesday raised the size of its public offering to 5.3 million shares and priced them at $38.25 each.
The Los Angeles real estate investment trust also granted underwriters a 30-day option to buy up to 787,500 additional shares to cover excess demand. When Kilroy first announced the secondary offering on Tuesday, it planned to sell only 4.5 million shares with a 675,000-share overallotment option.
If all the shares are sold, gross proceeds would now be nearly $233 million. The company said expects net proceeds of about $192 million, excluding the overallotment shares.
Kilroy said it plans to use part of the net proceeds toward the $100 million purchase of four office buildings in the Seattle suburb of Kirkland. Any remaining proceeds would be used to pay down an unsecured revolving credit facility, for other potential acquisitions or for general corporate purposes.
Underwriters for the offering, which the company expects to close on Monday, are BofA Merrill Lynch, Barclays Capital and J.P. Morgan.
Shares, were down 21 cents, or less than a percent, to $29.25 in midday trading on New York Stock Exchange.