Summary
Prologis, Inc. (PLD) filed an 8-K on February 7, 2012, reporting on a significant financing event. The company, through its operating partnership Prologis, L.P., entered into a Senior Term Loan Agreement on February 2, 2012. This agreement allows for borrowings up to €487,500,000, with an accordion feature that could increase this to €987,500,000. The initial borrowing occurred on February 7, 2012, and the loan matures on February 2, 2014, with options for the company to extend the maturity date up to three times for one-year periods. This new credit facility is crucial as it coincides with the termination of a prior Security Agency Agreement dated October 6, 2005. The termination involved revoking the classification of designated senior debt and ending the agreement with Bank of America, N.A., as collateral agent. This suggests a restructuring or refinancing of Prologis's debt obligations, aiming for potentially more flexible or cost-effective financing arrangements. Investors should note that the pricing of the new loan is tied to Prologis's public debt ratings, and the agreement includes standard representations, covenants, and default provisions, with Prologis providing an unconditional guarantee for the obligations.
Key Highlights
- 1Prologis, L.P. entered into a new Senior Term Loan Agreement on February 2, 2012, with initial lenders including Bank of America, N.A. as Administrative Agent.
- 2The new loan facility has an initial aggregate amount of up to €487,500,000, with an option to increase it to €987,500,000 via an accordion feature.
- 3The loan matures on February 2, 2014, but Prologis has the option to extend the maturity for up to three additional one-year periods, subject to certain conditions.
- 4The initial borrowing under this agreement took place on February 7, 2012.
- 5The agreement includes flexible re-borrowing provisions for any amounts prepaid.
- 6Pricing for the loan varies based on Prologis's public debt ratings.
- 7Concurrently, Prologis terminated its Amended and Restated Security Agency Agreement from October 6, 2005, and revoked the classification of previously designated senior debt.
- 8Prologis, Inc. has provided an unconditional guarantee for all borrower obligations under the new loan agreement.