Summary
Prologis, Inc. (operating as AMB Property, L.P. for this filing) announced on November 10, 2010, a significant update to its credit facilities. The company entered into a fourth amended and restated unsecured revolving credit agreement, increasing its borrowing capacity to $600 million from a previous $550 million facility. This move provides enhanced financial flexibility and liquidity for the company. The new credit agreement matures on March 1, 2014, with an option to extend for an additional year, offering a longer-term financing solution. The facility also includes provisions for increasing borrowings up to $800 million. The terms include interest rates based on LIBOR plus a margin, currently 185 basis points, and an annual facility fee of 35 basis points, both tied to the company's credit rating, indicating a commitment to managing costs based on its financial health. The agreement also allows for borrowings in multiple currencies and has customary covenants and default provisions, which are standard for such financing arrangements.
Key Highlights
- 1Increased revolving credit facility to $600 million from $550 million, enhancing liquidity.
- 2Extended the maturity date to March 1, 2014, with an option for a one-year extension.
- 3Potential to increase borrowing capacity up to $800 million.
- 4Interest rates are variable, based on LIBOR plus a margin (currently 185 bps) tied to credit rating.
- 5Annual facility fee of 35 basis points, also tied to credit rating.
- 6Allows for borrowings in multiple currencies (USD, GBP, CAD, EUR, JPY) up to a specified limit.
- 7Includes standard affirmative and negative covenants, as well as customary events of default.