Duke Realty Corp. (DRE), a real estate investment trust (REIT) engaged in owning, managing and developing industrial, health care and office properties across the U.S., recently announced an offering of $250 million aggregate principal amount of 6.75% senior unsecured notes due Mar 15, 2020.
The net proceeds from the offering would be primarily used to reduce debt and for general corporate purposes. Duke Realty has priced the notes at 99.98% of the face amount to yield 6.8%. Earlier, the company had renewed its unsecured revolving credit facility and extended it to Feb 2013. Under the terms of the renewal, the credit facility would offer a borrowing capacity of $850 million at an interest rate of 275 basis points over the applicable LIBOR rate.
Duke Realty maintains a balanced and flexible capital structure and has increased its liquidity by diligently managing overhead expenses and reducing dividend payments. With the renewal of the credit facility, the company has strengthened its balance sheet and gained an operating flexibility to protect and enhance market positions.
Duke Realty is one of the largest commercial real estate companies in the U.S. For over 35 years, the company has leveraged its local presence and its integrated platform to drive returns, establishing itself as a premier publicly traded real estate developer in the country.
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