Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced the pricing of a $500 million offering of 3.350% senior unsecured notes due February 1, 2021. The offering, priced on October 24, 2013, is expected to close on November 1, 2013. The net proceeds, estimated at approximately $495 million after discounts and expenses, are intended for short-term use to repay borrowings under the company's global line and to fund the cash purchase of certain senior notes being tendered. These proceeds may also be used for other debt repayment, repurchase activities, or general corporate purposes. The notes will bear a fixed interest rate of 3.350% per annum and are guaranteed by Prologis, Inc. The company has the option to redeem the notes under specific conditions, including a call premium based on Treasury rates plus 25 basis points, or at par if redeemed on or after November 1, 2020. This debt issuance is part of a larger shelf registration and is structured to provide financial flexibility for Prologis's short-term debt management and strategic operations.
Key Highlights
- 1Prologis, L.P. priced a $500 million offering of 3.350% notes due 2021.
- 2The offering is expected to close on November 1, 2013.
- 3Net proceeds are estimated to be approximately $495 million.
- 4Proceeds will be used to repay global line borrowings and fund tender offers for senior notes.
- 5The notes are senior unsecured obligations of Prologis, L.P. and are guaranteed by Prologis, Inc.
- 6The notes carry a fixed interest rate of 3.350% per annum.
- 7Prologis has the option to redeem the notes under specified conditions.