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.
Frequently Asked Questions
This 8-K filing announces that AMB Property, L.P. (Prologis' operating partnership) entered into an amended and restated $500 million unsecured revolving credit agreement. This refinancing extends the maturity date and modifies terms of their existing credit facility.
Prologis, Inc. (referred to as AMB Property Corporation in the filing) remains a guarantor of AMB Property, L.P.'s obligations under the amended and restated credit agreement. This means Prologis, Inc. is financially responsible for the debt if the operating partnership defaults.
The amended facility is for $500 million, matures on December 11, 2005, with a one-year extension option. It allows for potential increases up to $700 million. Interest rates are based on LIBOR plus 60 basis points, and there is a 20 basis point annual facility fee, both contingent on the company's credit rating. It also permits foreign currency borrowings under certain conditions.
The amendment extends the maturity of a significant credit line, providing greater financial flexibility and stability for AMB Property, L.P. The ability to increase the facility size offers potential for future growth or capital needs. The terms appear competitive, with interest rates tied to credit quality and LIBOR.