What is the principal amount and term of the new credit facility?

The new credit facility is for an aggregate amount of up to €142,000,000 and has a term of 364 days from the date of the agreement, which was May 30, 2008.

Who is the ultimate borrower under this facility, and who guarantees it?

The facility provides unsecured loans to certain European affiliates of AMB Europe Fund I FCP-FIS. AMB Property, L.P., a subsidiary of AMB Property Corporation, acts as the loan guarantor.

What is the risk to AMB Property Corporation regarding this guarantee?

While AMB Property, L.P. is the guarantor, it is protected by a counter-indemnity from AMB Fund Management S. r.l. on behalf of AMB Europe Fund I FCP-FIS for all obligations under the guarantee. This structure aims to limit direct financial exposure for the parent company stemming from this specific facility, provided the counter-indemnity holds.

What are the main costs associated with this facility?

The costs include an interest margin of 95 basis points over EURIBOR (or LIBOR for non-euro loans), which can increase by an additional 100 basis points if AMB Property, L.P.'s credit rating falls below certain thresholds. Additionally, an upfront utilization fee of 30 basis points is payable on the total facility amount.

PLD/PLDGP 8-K: Financial Events

Summary

This 8-K filing by AMB Property Corporation (which later became Prologis, Inc.) on June 4, 2008, details a new financing arrangement entered into by its subsidiary, AMB Property, L.P. The core of the report is the establishment of a 364-day multi-currency revolving credit facility totaling €142,000,000. This facility is designed to provide working capital for certain European affiliates of AMB Europe Fund I FCP-FIS. Notably, AMB Property, L.P. is acting as the loan guarantor, with a counter-indemnity provided by AMB Fund Management S. r.l. on behalf of the fund, mitigating direct recourse risk for the parent on this specific facility. The terms include an interest margin of 95 basis points over EURIBOR (or LIBOR for non-euro loans), with a potential increase of 100 basis points if the guarantor's credit rating falls below certain levels. An upfront utilization fee of 30 basis points is also applicable. The facility contains standard covenants and events of default that could trigger mandatory prepayment or acceleration of loans, with the potential impact on AMB Property, L.P. stemming from its guarantee obligations if not cured.

Key Highlights

1AMB Property, L.P. (subsidiary of AMB Property Corp.) entered into a new €142 million, 364-day multi-currency revolving credit facility.
2The facility is secured by a guarantee from AMB Property, L.P., but counter-indemnified by AMB Fund Management S. r.l., limiting direct parent company recourse.
3The primary purpose is to provide unsecured loans to certain European affiliates of AMB Europe Fund I FCP-FIS.
4Interest rate is set at 95 basis points over EURIBOR/LIBOR, with a potential 100 basis point increase if credit rating deteriorates.
5An upfront utilization fee of 30 basis points is payable on the total facility amount.
6The agreement includes affirmative and negative covenants, as well as events of default that could lead to loan acceleration and calls on the guarantee.
7The filing includes exhibits detailing the facility agreement, the guarantee, and the counter-indemnity.

Prologis, Inc. 8-K Report, Financial Obligation (Jun 5, 2008)

Summary

Key Highlights

Frequently Asked Questions