Summary
This 8-K filing by Prologis, Inc. (PLD) announces the entry into a new Senior Term Loan Agreement on June 19, 2014, which supersedes a previous agreement from February 2, 2012. This new agreement allows Prologis, L.P. (the Operating Partnership) and its affiliates to secure loans up to €500,000,000, with an accordion feature that can increase the total to €1,000,000,000. The loan matures on June 19, 2017, but offers the possibility of two one-year extensions under certain conditions. Investors should note that the loan's interest rate will fluctuate based on Prologis' public debt ratings, and the agreement includes standard covenants, financial tests, and default provisions similar to the company's other major credit facilities. Both Prologis, Inc. and Prologis, L.P. have provided unconditional guarantees for the obligations under this loan agreement, indicating strong financial backing and commitment from the parent company and its operating subsidiary.
Key Highlights
- 1Prologis, Inc. and its Operating Partnership have entered into a new Senior Term Loan Agreement dated June 19, 2014.
- 2The new loan agreement provides an initial borrowing capacity of €500,000,000.
- 3An accordion feature allows the borrowing capacity to be increased up to €1,000,000,000.
- 4The loan has an initial maturity date of June 19, 2017, with options for two one-year extensions.
- 5Loan pricing (spread over LIBOR) is variable and depends on Prologis' public debt ratings.
- 6The agreement includes standard representations, covenants, financial tests, and default provisions.
- 7Prologis, Inc. and Prologis, L.P. have provided unconditional guarantees for the loan obligations.