Summary
Prologis, Inc. (PLD) has filed an 8-K report detailing a significant amendment to its Japanese revolving credit facility. The company, through its subsidiary Prologis Japan Finance Y.K., entered into a Fourth Amended and Restated Revolving Credit Agreement for JPY 45.0 billion, which is equivalent to approximately USD $459.8 million based on the filing date's exchange rate. This facility, also joined by ProLogis Tokyo Finance Investment Limited Partnership as a borrower, has a maturity date of May 14, 2018, and can be expanded up to JPY 56.5 billion (approximately USD $577.3 million). This facility's terms, including interest rates and fees, are tied to Prologis' public debt ratings, offering flexibility and potential cost savings as ratings improve. The agreement includes standard representations, covenants, and default provisions, notably a cross-acceleration clause for other significant indebtedness exceeding $50 million. The company's primary entities, Prologis, Inc. and Prologis, L.P., are providing unconditional guarantees for the obligations of all borrowers under this facility, underscoring the parent company's commitment to its Japanese operations.
Key Highlights
- 1Prologis, Inc. amended and restated its Japanese revolving credit facility, increasing its capacity.
- 2The facility, denominated in Japanese Yen (JPY), has an initial amount of JPY 45.0 billion (approx. USD $459.8 million).
- 3The credit facility has a maturity date of May 14, 2018.
- 4The facility allows for an increase in availability up to JPY 56.5 billion (approx. USD $577.3 million).
- 5Pricing and fees are variable, based on Prologis' public debt ratings.
- 6Prologis, Inc. and Prologis, L.P. provide unconditional guarantees for the borrower's obligations.
- 7The agreement includes customary covenants and default provisions, such as a cross-acceleration clause.