Summary
This Form 8-K filing by AMB Property Corporation (reporting as Prologis, Inc. in the prompt, but the filing is for AMB Property Corporation) on November 10, 2010, announces the issuance of $175 million in aggregate principal amount of 4.00% senior unsecured notes due 2018 by its operating partnership, AMB Property, L.P. These notes are fully and unconditionally guaranteed by AMB Property Corporation. The offering, made under an existing shelf registration statement, is expected to close on November 12, 2010. The primary use of the net proceeds is to reduce outstanding borrowings under the company's $500 million unsecured revolving credit facility, with approximately $140 million allocated to this purpose. The remaining proceeds are earmarked for general corporate purposes, which could include property acquisitions, development activities, equity investments, debt repayment, and general working capital needs. Pending deployment, proceeds may be invested in short-term securities.
Key Highlights
- 1AMB Property, L.P. issued $175 million in 4.00% notes due 2018.
- 2The notes are senior unsecured obligations and guaranteed by AMB Property Corporation.
- 3The offering is a registered public offering conducted under an effective shelf registration statement.
- 4The majority of net proceeds ($140 million) will be used to reduce borrowings under a $500 million revolving credit facility.
- 5Remaining proceeds are designated for general corporate purposes, including potential acquisitions and development.
- 6The offering is expected to close on November 12, 2010.