Summary
Prologis, Inc. (operating as AMB Property Corporation at the time of this filing) reported a significant update regarding its credit facilities on December 18, 2002. The company's primary operating partnership, AMB Property, L.P., entered into an amended and restated $500 million unsecured revolving credit agreement. This new facility replaces an existing one maturing in May 2003 and extends the maturity to December 11, 2005, with a one-year extension option. Importantly, Prologis, Inc. remains a guarantor of its operating partnership's obligations under this amended credit agreement, providing a crucial layer of financial backing.
Key Highlights
- 1AMB Property, L.P. (Prologis' operating partnership) amended and restated its $500 million unsecured revolving credit agreement.
- 2The new credit facility matures on December 11, 2005, with an option to extend for one additional year.
- 3Prologis, Inc. continues to serve as a guarantor for AMB Property, L.P.'s obligations under this credit agreement.
- 4The company has the flexibility to increase the credit facility's borrowing capacity from $500 million up to $700 million.
- 5Borrowing costs are tied to LIBOR plus a spread of 60 basis points, dependent on AMB Property, L.P.'s credit rating.
- 6An annual facility fee of 20 basis points is applicable, also based on the long-term debt credit rating.
- 7The agreement allows for borrowings up to $150 million in foreign currencies (Pounds Sterling, Euro, Yen) under specific conditions, including an investment-grade credit rating.