Duke Realty to Offer Senior Notes

Zacks

Duke Realty Limited Partnership – the operating partnership entity of Duke Realty Corp. (DRE), a real estate investment trust (:REIT), has recently priced an underwritten public offering of $300 million worth of 3.875% senior unsecured notes. The notes are scheduled to mature in October 2022 and are priced at 99.584% of their par value to yield 3.925% to maturity.

The net proceeds from the offering are expected to be utilized by the operating partnership to repay debt including all or a portion of outstanding borrowings under the existing revolving credit facility and for other general corporate purposes.

Barclays Capital Inc., part of Barclays PLC (BCS) Morgan Stanley & Co. LLC, part of Morgan Stanley (MS), UBS Securities, LLC part of UBS AG (UBS) and Wells Fargo Securities, LLC, part of Wells Fargo & Company (WFC) acted as joint book-running managers for the debt offering.

At the end of second quarter 2012, Duke Realty had nearly $107 million of cash with no balance on its line of credit. The company maintains a balanced and flexible balance sheet with ample liquidity and minimal debt maturities that enable it to capitalize on potential acquisition opportunities to fuel its top-line growth.

Duke Realty is one of the largest commercial real estate companies in the U.S., operating as a fully integrated owner, manager, and developer of industrial, office, and healthcare properties. For over 35 years, the company has leveraged its local presence and its integrated platform to drive returns, and has established itself as a premier publicly traded real estate developer in the country.

Duke Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also maintain our long-term Neutral recommendation on the stock.

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