8-KMaterial AgreementsFinancial EventsExhibits & Filings

Prologis, Inc. 8-K Report, Material Agreement (Jul 15, 2013)

Filed July 15, 2013For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) filed an 8-K on July 15, 2013, to report on significant financing activities. The key event is the entry into a new Global Senior Credit Agreement on July 11, 2013, establishing a revolving credit facility with an initial aggregate amount of approximately $2 billion, which can be expanded up to $3 billion through an accordion feature. This facility, set to mature on July 11, 2017, with options for extensions, provides Prologis with substantial liquidity and flexibility. Pricing terms are tied to the company's public debt ratings, offering potential cost savings with improved credit standing. In conjunction with this new agreement, Prologis has fully repaid and terminated its previous Global Senior Credit Agreement dated June 3, 2011. This move indicates a refinancing or restructuring of its debt obligations. The company's obligations under the new credit facility are unconditionally guaranteed by Prologis, Inc., and its operating partnership, Prologis, L.P., ensuring robust credit support. Investors should view this as a positive step towards strengthening the company's financial position and liquidity management.

Key Highlights

  • 1Entered into a new Global Senior Credit Agreement with an initial capacity of approximately $2 billion, effective July 11, 2013.
  • 2The new credit facility includes an accordion feature allowing for an increase in the aggregate amount to up to approximately $3 billion.
  • 3The facility matures on July 11, 2017, with the option for the Operating Partnership to extend the maturity date by six months on two separate occasions.
  • 4Borrowing costs (spread over LIBOR, facility fees, letter of credit fees) are variable and depend on Prologis's public debt ratings.
  • 5Prologis, Inc. unconditionally guaranteed all obligations under the new credit facility.
  • 6The previous Global Senior Credit Agreement dated June 3, 2011, was fully repaid and terminated as of July 11, 2013.
  • 7The new credit facility offers revolving loans and letter of credit issuance in various currencies.

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