8-KOther Events

Prologis, Inc. 8-K Report (Jul 2, 2004)

Filed July 2, 2004For Securities:PLDPLDGP

Summary

This 8-K filing from Prologis, Inc. (PLD) on July 2, 2004, details the establishment of a new unsecured revolving credit facility for its affiliate, AMB Japan Finance Y.K. The facility provides up to 24 billion Japanese Yen (approximately $222 million USD as of the filing date) to fund acquisition and development of properties in Japan. Prologis, Inc. (through AMB Property, L.P. and AMB Property Corporation) is a guarantor of this debt, signifying its commitment to the Japanese market expansion.

Key Highlights

  • 1Establishment of a JPY 24 billion (approx. $222 million USD) unsecured revolving credit facility for AMB Japan Finance Y.K.
  • 2Funds are earmarked for acquisition and development of properties in Japan.
  • 3Prologis, Inc. (via its affiliates AMB Property, L.P. and AMB Property Corporation) acts as a guarantor for the credit facility.
  • 4The facility matures on June 29, 2007, with a one-year extension option.
  • 5Borrowing costs are based on TIBOR plus a margin (currently 60 basis points), adjustable based on AMB Property, L.P.'s long-term debt credit rating.
  • 6An annual facility fee of 20 basis points is also applicable.
  • 7Customary covenants, including financial reporting and ratio maintenance, are part of the agreement.

Frequently Asked Questions

The primary purpose of the JPY 24 billion revolving credit facility is to provide funding for the acquisition and development of properties in Japan by AMB Japan Finance Y.K., an affiliate of Prologis.

Prologis, Inc. (through its subsidiaries AMB Property, L.P. and AMB Property Corporation) is a guarantor for the obligations under this credit facility. While not directly borrowing, Prologis is providing a guarantee, meaning it could be liable if the borrower defaults.

Borrowings under the facility will generally bear interest at TIBOR plus a margin of 60 basis points, which can vary based on Prologis's credit rating. There is also an annual facility fee of 20 basis points on outstanding commitments. The facility matures in June 2007 with a one-year extension option.

The filing mentions customary negative covenants that may limit mergers or consolidations and the incurrence of liens. Investors should review the full credit agreement (Exhibit 10.1) for specific details on any potential impact on Prologis's broader capital-raising capabilities.