Kilroy Realty Corporation has closed on a fifth amended and restated senior unsecured revolving credit facility allowing borrowings of up to $1.25 billion and an amended and restated senior unsecured term loan facility of $250 million. The transactions extend maturities to July 31, 2030, for the revolving facility and July 31, 2031, for the term loan, while improving pricing and increasing total borrowing capacity. The revolving facility includes $150 million in new capacity compared to the previous agreement, and the term loan adds $50 million in delayed draw commitments available through June 11, 2027.

Angela Aman, Chief Executive Officer of Kilroy Realty Corporation, stated that the recast of the facilities has allowed the company to extend maturity dates, improve pricing, and increase total available borrowing capacity. She attributed the successful execution to strong banking partnerships that provide robust liquidity and financial flexibility.

Revolving Credit Facility Terms

The new revolving credit facility increases the total borrowing amount to $1.25 billion from the previous $1.10 billion. The SOFR borrowing spread was reduced to 100 basis points from 110 basis points, and the SOFR credit spread adjustment was eliminated. The annual facility fee remains at 25 basis points. The maturity date was extended by two years to July 31, 2030, prior to the exercise of available extension options, which remain two 6-month periods.

Term Loan Facility Terms

The amended and restated term loan facility provides for a $250 million senior unsecured term loan, comprising $200 million previously outstanding and $50 million in new delayed draw commitments. The SOFR borrowing spread decreased to 115 basis points from 120 basis points, and the SOFR credit spread adjustment was removed. The maturity date was extended to July 31, 2031, from the previous October 3, 2026, date, and extension options were removed.

Banking Syndicate

JPMorgan Chase Bank, N.A., BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, and U.S. Bank National Association acted as joint lead arrangers and joint bookrunners for both facilities. JPMorgan Chase Bank, N.A. serves as the administrative agent, while Bank of America, N.A. and Wells Fargo Bank, N.A. are syndication agents. Additional participants include Banco Santander, S.A., New York Branch, The Bank of Nova Scotia, BMO Capital Markets Corp., Royal Bank of Canada, Barclays Bank PLC, and BMO Bank, N.A.

BMO Capital analyst John Kim maintained a Market Perform rating on Kilroy Realty and raised the price target to $38 from $34. The adjustment reflects a revised valuation outlook for the real estate investment trust.

Rating and Target Details

The research note updates the investment stance on Kilroy Realty without altering the overall Market Perform recommendation. The new price target of $38 represents an increase from the previous target of $34.