8-KMaterial AgreementsFinancial EventsExhibits & Filings

Prologis, Inc. 8-K Report, Material Agreement (Dec 2, 2013)

Filed December 2, 2013For Securities:PLDPLDGP

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.

Frequently Asked Questions

The primary purpose of this debt offering is to refinance existing debt. Prologis intends to use a portion of the net proceeds to repurchase its outstanding 5.875% Guaranteed Notes due 2014 and the remainder for general corporate purposes, including repaying other indebtedness and short-term borrowings.

The new notes are €700,000,000 in aggregate principal amount, bearing interest at a rate of 3.000% per annum, and will mature on January 18, 2022. Interest will be payable annually on January 18 of each year, starting in 2015. These are senior unsecured obligations of Prologis, L.P., fully guaranteed by Prologis, Inc.

Approximately €407 million of the net proceeds will be used to repurchase the outstanding principal amount of Prologis International Funding S.A.'s 5.875% Guaranteed Notes due 2014. The remaining proceeds will be used for general corporate purposes, including repaying other indebtedness and short-term borrowings under its credit facilities.

This refinancing represents a move to lower the company's overall cost of debt. By issuing new notes at a significantly lower interest rate (3.000%) to repay older notes with a higher rate (5.875%), Prologis is expected to reduce its annual interest expense, thereby improving profitability and financial flexibility.