Summary
This 8-K filing from AMB Property Corporation (which later became Prologis, Inc. through a merger) reports the creation of a significant new debt facility for its subsidiary, AMB Property, L.P. The company secured a $325 million unsecured term loan credit agreement with a syndicate of banks, led by JPMorgan Chase Bank, N.A. AMB Property Corporation acts as a guarantor for this obligation, indicating its commitment to the subsidiary's debt. This new facility provides additional liquidity and demonstrates the company's access to capital markets.
Key Highlights
- 1AMB Property, L.P. entered into a $325 million unsecured term loan credit agreement on March 27, 2008.
- 2AMB Property Corporation is a guarantor of its subsidiary's obligations under the new credit agreement.
- 3The term loan facility matures on September 27, 2009, with an option for a one-year extension.
- 4The company has the flexibility to increase the facility size up to $500 million within six months of closing.
- 5The current borrowing rate is LIBOR plus 100 basis points, with a pricing grid based on the company's long-term debt credit rating.
- 6The agreement includes various affirmative and negative covenants, as well as specific events of default that could lead to acceleration of the loan.
- 7The credit agreement and related guaranty are filed as exhibits to this report.