Kilroy Realty Corporation (NYSE: KRC) (the “Company”) today announced that its operating partnership, Kilroy Realty, L.P. (the “Operating Partnership”), has agreed to sell $250 million aggregate principal amount of senior unsecured notes (the “Senior Unsecured Notes”) in a private placement. The Operating Partnership expects to issue $175 million principal amount of 3.35% Senior Unsecured Notes (“Series A”) and $75 million of 3.45% Senior Unsecured Notes (“Series B”) by February 17, 2017. The Senior Unsecured Notes are guaranteed by the Company.

Series A will pay interest semi-annually at a rate of 3.35% per annum and mature on February 17, 2027, and Series B will pay interest semi-annually at a rate of 3.45% per annum and mature on February 17, 2029. Proceeds from the financing will be used to refinance existing indebtedness, to redeem preferred stock and for general corporate purposes.

“We are very pleased with the results of this private placement which allowed us to raise capital at very attractive rates from a group of high quality, long-term institutional investors. The delayed drawdown feature combined with our recently announced joint venture will allow us to efficiently manage our development expenditures and potential redemption of our preferred stock in 2017,” said Tyler H. Rose, the company’s executive vice president and chief financial officer.

The Senior Unsecured Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Act”) or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state securities laws. This press release is for information only, does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Barclays acted as the sole placement agent for the offering.

About Kilroy Realty Corporation. With almost 70 years’ experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region’s premier landlords. The Company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on our current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of our control. Accordingly, actual performance, results and events may vary materially from those indicated in forward-looking statements, and you should not rely on forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in forward-looking statements, including, among others, risks associated with: investment in real estate assets, which are illiquid; trends in the real estate industry; significant competition, which may decrease the occupancy and rental rates of properties; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired properties; the availability of cash for distribution and debt service and exposure of risk of default under debt obligations; adverse changes to, or implementations of, applicable laws, regulations or legislation; and the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts. These factors are not exhaustive. For a discussion of additional factors that could materially adversely affect our business and financial performance, see the factors included under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2015 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on information that was available, and speak only as of the date on which they are made. We assume no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent required in connection with ongoing requirements under U.S. securities laws.