Kilroy Realty (KRC) Expands Credit Facilities to $1.5B Total

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

Kilroy Realty, L.P. — the operating arm of Kilroy Realty Corporation (NYSE: KRC) — announced on June 17, 2026 that it has closed two updated credit agreements: a $1.25 billion revolving credit facility (a flexible loan it can draw on and repay as needed) maturing July 31, 2030, and a $250 million term loan (a fixed-amount loan) maturing July 31, 2031. The deals extend maturity dates, reduce the interest-rate spread (the extra cost above the benchmark rate) on both facilities, and add $50 million in new delayed-draw capacity to the term loan.

Kilroy Realty, L.P., the operating partnership of Kilroy Realty Corporation (NYSE: KRC), has closed on two refreshed credit agreements totaling up to $1.5 billion in available borrowing capacity, the company said in a filing dated June 17, 2026.

The Revolving Credit Facility

The new revolving credit facility — a flexible business loan the company can draw on, repay, and redraw as needed — allows borrowings of up to $1.25 billion, up from the previous limit of $1.10 billion. Its maturity date (the date by which the loan must be repaid) was pushed out two years to July 31, 2030, before two optional six-month extensions that could stretch it further. The interest-rate spread above the SOFR benchmark rate (a standard short-term lending rate) was reduced to 100 basis points (1.00%) from 110 basis points, and a previously applied credit spread adjustment of 10 basis points was eliminated entirely. The annual facility fee remains at 25 basis points.

The Term Loan Facility

The updated term loan provides for $250 million in total, maturing on July 31, 2031 — a significant extension from the prior maturity of October 3, 2026. Of that total, $200 million was already outstanding under the old agreement and remains outstanding. The remaining $50 million represents new delayed-draw commitments (money the company can choose to borrow later) available to be drawn through June 11, 2027. The SOFR borrowing spread was reduced to 115 basis points from 120 basis points, and the 10-basis-point credit spread adjustment was also removed.

Leadership Comment

"We are pleased to announce the recast of our Revolving Credit and Term Loan Facilities, which has allowed us to extend the maturity dates, improve pricing, and increase total available borrowing capacity," said Angela Aman, Chief Executive Officer of Kilroy Realty Corporation, according to the filing.

Banking Group

Both facilities were led by JPMorgan Chase Bank, N.A., which also serves as administrative agent for each. Joint lead arrangers and bookrunners included BofA Securities, Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC, and U.S. Bank National Association. Additional arrangers and agents include Banco Santander, S.A. (New York Branch), The Bank of Nova Scotia, BMO Capital Markets Corp., Royal Bank of Canada, and Barclays Bank PLC, among others.

Key facts

Kilroy Realty, L.P. (operating partnership of NYSE: KRC) closed two updated credit agreements on June 17, 2026.

New revolving credit facility: up to $1.25 billion (increased from $1.10 billion), matures July 31, 2030.

SOFR borrowing spread on revolving facility cut to 100 bps from 110 bps; credit spread adjustment eliminated.

New term loan facility: $250 million total, matures July 31, 2031 (extended from October 3, 2026).

$200 million previously outstanding under old term loan remains outstanding; $50 million in new delayed-draw commitments available through June 11, 2027.

SOFR borrowing spread on term loan cut to 115 bps from 120 bps; credit spread adjustment eliminated.

JPMorgan Chase Bank, N.A. is administrative agent for both facilities.

CEO Angela Aman cited extended maturities, improved pricing, and increased capacity.

Why it matters

The prior term loan was set to mature in October 2026 — just months away — so this refinancing removes a near-term repayment deadline and pushes it out to 2031. At the same time, the revolving credit facility's maturity was extended two years and its borrowing capacity grew by $150 million. The reduction in the SOFR spread and elimination of the credit spread adjustment on both facilities means Kilroy Realty, L.P. will pay less interest on any amounts it borrows. Together, these moves reduce refinancing risk and lower the cost of capital for a company whose portfolio — at 77.6% occupied as of March 31, 2026 — is still rebuilding occupancy in a challenging office market.

Frequently asked

What did Kilroy Realty, L.P. announce on June 17, 2026?

It closed two updated credit agreements: a $1.25 billion revolving credit facility maturing July 31, 2030, and a $250 million term loan maturing July 31, 2031.

How do the new terms compare to the old ones?

The revolving facility grew from $1.10 billion to $1.25 billion, its maturity was extended two years, and its SOFR borrowing spread dropped from 110 to 100 basis points. The term loan grew from $200 million to $250 million (with $50 million in new delayed-draw capacity), its maturity was pushed from October 2026 to July 2031, and its spread dropped from 120 to 115 basis points. Both facilities also eliminated a 10-basis-point credit spread adjustment.

Who is leading the banking group for these facilities?

JPMorgan Chase Bank, N.A. is the administrative agent for both facilities and served as a joint lead arranger and bookrunner alongside BofA Securities, Wells Fargo Securities, PNC Capital Markets, and U.S. Bank National Association.

What is the $50 million delayed-draw commitment?

It is an additional $50 million under the term loan that Kilroy Realty, L.P. can choose to borrow at any point through June 11, 2027, rather than receiving it all upfront.

What the filing reported

1.01 Entry into a Material Agreement

2.03 Creation of a Material Financial Obligation

7.01 Regulation FD Disclosure

9.01 Financial Statements & Exhibits