Duke Realty announces early tender response in $500 million offer

New York, April 2 – Duke Realty Corp. announced that holders tendered $646.25 million of notes by the early deadline in the offer by its operating partnership Duke Realty LP to buy up to $500 million of five series of notes.

The response is as follows, with the notes listed in order of priority acceptance level, highest priority first:

• $120,462,000 of the $250 million of 8.25% senior notes due 2019 were tendered. Pricing for these notes will be set using the 1.375% Treasury due Feb. 29, 2020 plus 60 basis points;

• $192,817,000 of the $450 million of 5.95% senior notes due 2017 were tendered. This tranche has an offer sub-cap of $175 million. Since the sub-cap has already been exceeded, Duke Realty said it does not expect to accept any notes tendered after the early deadline. Pricing will be 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 were tendered. Pricing will be set using the 1.375% Treasury due Feb. 29, 2020 plus 80 bps;

• $119.71 million of the $300 million of 6.5% senior notes due 2018 were tendered. Pricing will be set using the 1% Treasury due March 15, 2018 plus 55 bps; and

• $91,918,000 of the $300 million of 4.375% senior notes due 2022 were tendered. Pricing will be set using the 2% Treasury due Feb. 15, 2025 plus 100 bps.

The prices will be 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 for the following outstanding notes, listed in order of priority acceptance level.

The total purchase amount will include 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.

Those who tender after the early deadline will receive the total amount less the early premium.

The company also will pay accrued interest up to but excluding the settlement date of April 3 for early tendered notes and April 16 for remaining tenders.

The tender offer will end at 11:59 p.m. ET on April 15.

Tendered notes may only be withdrawn before the early tender deadline.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