Duke Realty Announces Pricing Terms for $350 Million Senior Unsecured Notes Offering

INDIANAPOLIS, June 22, 2020 (GLOBE NEWSWIRE) -- Duke Realty Corporation (NYSE: DRE), a leading industrial property REIT, announced today that its operating partnership, Duke Realty Limited Partnership (the “Operating Partnership”), has priced an underwritten public offering of $350 million of its 1.750% senior unsecured notes due July 1, 2030. The notes were priced at 99.072% of their face amount to yield 1.852% to maturity. The offering is expected to close on June 29, 2020, subject to customary closing conditions.

The Operating Partnership intends to use the net proceeds from this offering to repurchase the Company's 3.875% Senior Notes due 2022 pursuant to the previously announced tender offer. Any remaining net proceeds from this offering will be used for general corporate purposes, including to repay borrowings outstanding on our unsecured senior line of credit.  In the short term, the net proceeds of the sale of the notes may be held in cash and cash equivalents.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Jefferies LLC, Scotia Capital (USA) Inc., and SunTrust Robinson Humphrey, Inc. acted as joint book-running managers for the offering. Barclays Capital Inc., RBC Capital Markets, LLC, Regions Securities LLC, Samuel A. Ramirez & Company, Inc., UBS Securities LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC acted as co-managers.

Duke Realty and the Operating Partnership have filed a registration statement (including a preliminary prospectus supplement and a prospectus) with the U.S. Securities and Exchange Commission (“SEC”) for the offering to which this communication relates, which became effective upon filing with the SEC. The offering will be made only by means of a prospectus and prospectus supplement. You may obtain these documents for free by searching the SEC online database on the SEC website at Alternatively, Duke Realty, the Operating Partnership, or any underwriter participating in the offering will arrange to send you the prospectus supplement and prospectus if you request it from (i) Citigroup Global Markets Inc. toll free at 1-800-831-9146, (ii) J.P. Morgan Securities LLC collect at 1-212-834-4533, or (iii) Morgan Stanley & Co. LLC toll free at 1-866-718-1649. 

Before making an investment in the securities, potential investors should read the prospectus supplement, the accompanying prospectus and the other documents that the Operating Partnership has filed and will file with the SEC for more complete information about the Operating Partnership and the offering.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. 

About Duke Realty Corporation

Duke Realty Corporation owns and operates approximately 156 million rentable square feet of industrial assets in 20 major U.S. logistics markets.  Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is included in the S&P 500 Index.

Cautionary Notice Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the federal securities laws.  All statements, other than statements of historical facts, including, among others, statements regarding the company’s intended use of proceeds from the offering noted above, future financial position or results, future dividends, and future performance, are forward-looking statements. Those statements include statements regarding the intent, belief, or current expectations of the company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should," or similar expressions, although not all forward-looking statements may contain such words. Forward-looking statements are not guarantees of future events or performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company’s abilities to control or predict. Such factors include, but are not limited to, (i) general adverse economic and local real estate conditions; (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency, or a general downturn in their business; (iii) financing risks, such as the inability to obtain equity, debt, or other sources of financing or refinancing on favorable terms, if at all; (iv) the company’s ability to raise capital by selling its assets; (v) changes in governmental laws and regulations; (vi) the level and volatility of interest rates and foreign currency exchange rates; (vii) valuation of joint venture investments; (viii) valuation of marketable securities and other investments; (ix) valuation of real estate; (x) increases in operating costs; (xi) changes in the dividend policy for the company’s common stock; (xii) the reduction in the company’s income in the event of multiple lease terminations by tenants; (xiii) impairment charges, (xiv) the effects of geopolitical instability and risks such as terrorist attacks and trade wars; (xv) the effects of natural disasters, including the current pandemic caused by COVID-19, as well as floods, droughts, wind, tornados, and hurricanes; and (xvi) the effect of any damage to our reputation resulting from developments relating to any of items (i) – (xv). Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company's filings with the Securities and Exchange Commission.  The company refers you to the section entitled “Risk Factors” contained in the company's Annual Report on Form 10-K for the year ended December 31, 2019 and the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

Contact Information:

Investors:

Ron Hubbard

317.808.6060

Media:

Helen McCarthy

317.708.8010