Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced on November 25, 2013, the pricing of a €700 million offering of 3.000% notes due 2022. The net proceeds, estimated at approximately €692 million (or $935 million based on the exchange rate at the time), are intended for strategic debt management. A significant portion will be used to repurchase outstanding 5.875% Guaranteed Notes due October 23, 2014, issued by a majority-owned subsidiary. The remaining proceeds will be allocated towards general corporate purposes, including repaying other outstanding indebtedness and short-term borrowings under its credit facilities. This debt issuance reflects Prologis' proactive approach to managing its capital structure and optimizing its debt profile. The company is leveraging the current market conditions to refinance existing debt at a lower interest rate, thereby potentially reducing its overall interest expense and improving its financial flexibility. The new notes are senior unsecured obligations, fully guaranteed by Prologis, Inc., and are expected to close on December 3, 2013.
Key Highlights
- 1Prologis, L.P. priced a €700 million offering of 3.000% notes due 2022.
- 2Net proceeds are estimated to be approximately €692 million ($935 million).
- 3A portion of the proceeds will be used to repurchase €407 million of 5.875% Guaranteed Notes due 2014.
- 4The remaining proceeds will be used for general corporate purposes and to repay other indebtedness.
- 5The notes carry a fixed interest rate of 3.000% per annum.
- 6The notes are senior unsecured obligations of Prologis, L.P., fully guaranteed by Prologis, Inc.
- 7The offering is expected to close on December 3, 2013.