SOURCE: Duke Realty Corporation

Duke Realty Corporation

June 16, 2016 18:06 ET

Duke Realty Corporation Announces Offering of $375 Million of Senior Unsecured Notes

INDIANAPOLIS, IN--(Marketwired - June 16, 2016) - Duke Realty Corporation (NYSE: DRE), a leading industrial and medical office property REIT, announced today that its operating partnership, Duke Realty Limited Partnership (the "Operating Partnership"), has priced an underwritten public offering of $375 million of its 3.250% senior unsecured notes due June 30, 2026. The notes were priced at 99.070% of their face amount to yield 3.360% to maturity. The Operating Partnership intends to use the net proceeds from this offering (i) to repurchase the Company's 5.95% Senior Notes due 2017 pursuant to the previously announced tender offer, (ii) to redeem any remaining 5.95% Senior Notes due 2017 that are not tendered in the tender offer (or in the event the tender offer is not consummated) and (iii) to repay borrowings under its revolving credit facility. Any remaining net proceeds from the offering will be used for general corporate purposes. The offering is expected to close on June 23, 2016, subject to customary closing conditions.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC, and SunTrust Robinson Humphrey, Inc. acted as joint book-running managers. Barclays Capital Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., and Samuel A. Ramirez & Company, Inc. acted as co-managers.

A registration statement relating to these securities became effective upon filing with the Securities and Exchange Commission. The offering will be made only by means of a prospectus and prospectus supplement. Before making an investment in the securities, potential investors should read the prospectus supplement, the accompanying prospectus and the other documents that the Operating Partnership has filed with the SEC for more complete information about us and the offering. Copies of these documents may be obtained for free by visiting EDGAR on the SEC Web site at or by contacting: J.P. Morgan Securities LLC, 383 Madison Avenue, New York NY 10179, Attn: Investment Grade Syndicate Desk, or by calling (212) 834-4533 (collect); Morgan Stanley & Co. LLC, 1585 Broadway, 29th Floor, New York, NY 10036, Attn: Investment Banking Division, or by calling 1-866-718-1649 (toll free); UBS Securities LLC, 1285 Avenue of the Americas, New York, NY 10019, Attention: Fixed Income Syndicate, or by calling 1-888-827-7275 (toll free); or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service, or by calling 1-800-645-3751 (toll free).

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.

About Duke Realty Corporation

Duke Realty Corporation owns and operates approximately 138 million rentable square feet of industrial and medical office assets in 21 major U.S. metropolitan areas. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty Corporation is available at

Cautionary Notice Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding the company's future financial position or results, future dividends, and future performance, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should," or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company's abilities to control or predict. Such factors include, but are not limited to, (i) general adverse economic and local real estate conditions; (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, if at all; (iv) the company's ability to raise capital by selling its assets; (v) changes in governmental laws and regulations; (vi) the level and volatility of interest rates and foreign currency exchange rates; (vii) valuation of joint venture investments, (viii) valuation of marketable securities and other investments; (ix) valuation of real estate; (x) increases in operating costs; (xi) changes in the dividend policy for the company's common stock; (xii) the reduction in the company's income in the event of multiple lease terminations by tenants; (xiii) impairment charges, (xiv) the effects of geopolitical instability and risks such as terrorist attacks; (xv) the effects of weather and natural disasters such as floods, droughts, wind, tornados and hurricanes; (xvi) the company's ability to consummate the tender offer; and (xvii) the effect of any damage to our reputation resulting from developments relating to any of items (i) - (xvi). Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company's filings with the Securities and Exchange Commission. The company refers you to the section entitled "Risk Factors" contained in the company's Annual Report on Form 10-K for the year ended December 31, 2015, as updated by from time to time in the company's subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and in other filings the company makes with the SEC. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

Contact Information

  • Contact Information:

    Ron Hubbard

    Helen McCarthy