Duke Realty announces tenders results for offers to buy notes

New York, Sept. 14 - Duke Realty Corp. announced the results as of Sept. 11 and Sept. 14 for its various current tender offers.

By the expiration date of 5 p.m. ET on Sept. 11, holders had tendered $39.299 million, or 32.36%, of its $121.44 million of 7.75% senior notes due 2009 and $57.879 million, or 36.70%, of its $157,728,000 of 5.25% senior notes due 2010.

In a concurrent offer, Duke said that by the early tendered deadline of 5 p.m. ET on Sept. 14 it received tenders for more than the $50 million maximum payment amount in its tender for its $156,815,000 of 6.95% senior notes due 2011.

Because the amount that will be paid for the notes tendered so far exceeds the maximum payment amount, notes will be accepted on a pro rata basis. The factor cannot be calculated until the expiration of the offer.

However Duke said that because the maximum has been met for the 6.95% notes, it will not be buying any of its $218,437,000 of 5.625% senior notes due 2011, $150 million of 5.875% senior notes due 2012, and $50 million of 5.45% senior notes due 2012. Those three series of notes are lower in acceptance priority than the 6.95% notes.

Duke Realty announced the two tender offers on Aug. 31.

In the first offer, the company is tendering for any and all of its 7.75% senior notes due 2009 and any and all of its 5.25% senior notes due 2010.

For each $1,000 principal amount, the company will pay $1,010.55 for the 7.75% notes and $1,012.50 for the 5.25% notes.

In the concurrent offer, Duke Realty announced it was tendering for up to $50 million total of the following notes series, which are listed in order of acceptance priority level:

• $156,815,000 of 6.95% senior notes due 2011;

• $218,437,000 of 5.625% senior notes due 2011;

• $150 million of 5.875% senior notes due 2012; and

• $50 million of 5.45% senior notes due 2012.

For each $1,000 principal amount, the company will pay $1,042.50 for the 6.95% notes, $1,028.75 for the 5.625% notes, $1,027.50 for the 5.875% notes and $1,013.75 for the 5.45% notes. These payouts include a $30.00 payment for those who tender prior to the early deadline.

Duke will also pay accrued interest.

The any and all offer ended at 5 p.m. ET on Sept. 11 while the maximum offer is set to expire at 11:59 p.m. ET on Sept. 28.

The early tender date for the maximum offer was 5 p.m. ET on Sept. 14.

The company said it expects to use cash on hand and available borrowings under its revolving credit facilities, as well as proceeds from asset sales and retained cash flow from operations, for the offers.

D.F. King & Co., Inc. is the information agent (800 848-3416 or call collect 212 269-5550). Wells Fargo Securities is the dealer manager (866 309-6316 or 704 715-8341).

Duke is an industrial, office and retail properties company based in Indianapolis.

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