Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced on August 15, 2013, the issuance of $1.25 billion in aggregate principal amount of senior unsecured notes. This debt issuance comprises $400 million of 2.750% notes due 2019 and $850 million of 4.250% notes due 2023. The issuance was made under an existing indenture, with a fifth supplemental indenture executed to amend the definition of Total Unencumbered Assets, impacting the notes and future debt issuances. The company's operating partnership is the issuer of these notes, with Prologis, Inc. providing full and unconditional guarantees. These notes are redeemable at the company's option under specific conditions related to prevailing interest rates and the time to maturity. The indenture includes restrictions on the operating partnership's ability to incur further debt and dispose of assets, which are standard covenants for such debt offerings. This move likely aimed to refinance existing debt, fund operations, or support ongoing growth initiatives in the industrial real estate market.
Key Highlights
- 1Prologis, L.P. issued $1.25 billion in aggregate principal amount of notes.
- 2The issuance consists of $400 million of 2.750% notes due February 15, 2019.
- 3The issuance also includes $850 million of 4.250% notes due August 15, 2023.
- 4Prologis, Inc. fully and unconditionally guarantees the notes.
- 5A fifth supplemental indenture was executed to amend the definition of 'Total Unencumbered Assets'.
- 6The notes are senior unsecured obligations of the Operating Partnership.
- 7The indenture contains covenants restricting additional indebtedness and asset disposals.