Duke Realty Goes for Pricing on Public Offering of $350 Million Senior Unsecured Notes

Duke Realty Corporation (NYSE: DRE), an industrial property REIT company, announced that its operating partnership, Duke Realty Limited Partnership, has priced a public offering of $350 million of its 1.750% senior unsecured notes subject to due on July 1, 2030. Company priced notes at 99.072% of their face amount for the yield of 1.852% on maturity. The offering will close on June 29, 2020, however according to customary closing conditions.

Duke Realty Limited Partnership purposed to employ the net proceeds received via the offering for the repurchase of the Company’s 3.875% Senior Notes that are due 2022 accordant to the previously announced tender offer. While the company will use the remaining net proceeds for the general corporate purposes which includes repaying the borrowings that are outstanding on company‚Äôs unsecured senior line of credit. The company may keep the net proceeds of the sale of the notes in cash and cash equivalents for the short term.

6 financial firms worked as joint book-running managers for the offering which include Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC, Scotia Capital (USA) Inc., and SunTrust Robinson Humphrey, Inc. While 7 firms worked as LLC acted as co-managers for the offering, i.e. Barclays Capital Inc., RBC Capital Markets, LLC, Regions Securities LLC, Samuel A. Ramirez & Company, Inc., UBS Securities LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities.

Duke Realty Corporation is the US-based REIT which owns and runs 156 million rentable square feet of industrial assets in the 20 logistics markets across the US. It is large-cap company traded on NYSE and is included in the S&P 500 index with market cap of $13.39 billion and EPS increase of 11.50% in last year.

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