LOS ANGELES—Kilroy Realty, an operating partnership of Kilroy Realty Corp. has priced a public offering of $400 million in unsecured senior notes due to mature on October 1, 2025. The company expects to earn $394.5 million from the offering, after paying for underwriting costs, and will use the proceeds to refinance 5% senior notes due this year, as well as for general corporate purposes, including real estate acquisitions.

“We had terrific execution with significant investor demand in what is a very volatile capital market,” Tyler Rose, Kilroy Realty Corp.'s CEO, tells GlobeSt.com. “We were more than four-times oversubscribed and were able to upsize the offering to $400 million while achieving very attractive ten-year pricing with a very high quality institutional investor base.”

The offering is priced at 99.4% of the principal cost and will close on September 16, 2015. The notes will pay a semi-annual interest of 4.375% until maturity. Bank of America Merrill Lynch, Barclays, J.P. Morgan and Wells Fargo Securities acted as joint book-running managers for the offering.

Earlier this year, the company disposed of $309 million in assets. The sale was part of the company's strategy to recycle capital to fund development projects and acquisition objectives. There were a total of ten properties in the sale, all located in San Diego and Washington.