Duke Realty announces purchase amounts, prices in $500 million tender

New York, April 6 – Duke Realty Corp. announced the acceptance levels and pricing in the tender offer by its operating partnership Duke Realty LP to buy up to $500 million of five series of notes.

The company previously disclosed on April 2 that holders had tendered $646.25 million of notes by the early deadline.

Because the offer was oversubscribed by the early tender date, no more notes will be accepted. The offer would have ended at 11:59 p.m. ET on April 15.

Notes will be accepted as follows, listed in order of priority acceptance level, highest priority first:

• $120,462,000 of the $250 million of 8.25% senior notes due 2019, representing all 100% of the series that were tendered. Duke Realty will pay $1,262.69 per $1,000 principal amount, set using the 1.375% Treasury due Feb. 29, 2020 plus 60 basis points;

• $175 million of the $450 million of 5.95% senior notes due 2017, representing 100% of the offer sub-cap. Notes will be accepted pro rata from the $192,817,000 tendered. Duke Realty will pay $1,092.69 per $1,000 principal amount, set using the 0.5% Treasury due Feb. 28, 2017 plus 40 bps;

• $121.34 million of the $250 million of 6.75% senior notes due 2020, representing all 100% of the series that were tendered. Duke Realty will pay $1,215.16 per $1,000 principal amount, set using the 1.375% Treasury due Feb. 29, 2020 plus 80 bps;

• $8,104,000 of the $300 million of 6.5% senior notes due 2018. Notes will be accepted pro rata from the $119.71 million tendered. Duke Realty will pay $1,138.33 per $1,000 principal amount, set using the 1% Treasury due March 15, 2018 plus 55 bps; and

• None of the $300 million of 4.375% senior notes due 2022 since the overall cap was reached. For this series, $91,918,000 were tendered. Duke set pricing at $1,091.91 per $1,000 principal amount using the 2% Treasury due Feb. 15, 2025 plus 100 bps.

Pricing was fixed at 2 p.m. ET on April 2 using the bid-side price of the yield to maturity of the reference security plus a fixed spread, as indicated above.

The total purchase amount includes an early tender premium of $30.00 per $1,000 of notes tendered by 5 p.m. ET on April 1, the early tender date.

The company also will pay accrued interest up to but excluding the settlement date.

Accepted tenders were settled on Friday.

Tendered notes may only be withdrawn before the early tender deadline.

J.P. Morgan Securities LLC (800 834-4666 or 212 834-4811) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) are the dealer managers. D.F. King & Co., Inc. (866 796-7184 and 212 269-5550 banks and brokers or dre@dfking.com) is the information agent and tender agent.

Duke Realty is an Indianapolis-based real estate investment trust that owns and operates industrial and office space.

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