Fitch gives Duke Realty notes BBB

Fitch Ratings said it has assigned a BBB rating to the $300 million of 3.75% senior unsecured notes due Dec. 1, 2024 issued by Duke Realty LP, the operating partnership of Duke Realty Corp.

The agency stated that the issue priced at 98.795% of par, representing a 3.896% yield to maturity and a 153 basis point spread to the benchmark Treasury rate.

Duke said it will use the proceeds from the offering and planned asset sales to pay down revolver borrowings, repay its $250 million of 7.375% senior notes due Feb. 15, 2015, redeem all of its 6.6% Series L preferred shares outstanding and help fund its $252 million of committed development expenditures at Sept. 30.

The outlook is stable.

Fitch added that the ratings take into account Duke's large pool of diversified industrial, office, and medical office properties, strong access to various forms of capital, and adequate unencumbered asset coverage of unsecured debt.

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