8-KMaterial AgreementsFinancial EventsExhibits & Filings

Prologis, Inc. 8-K Report, Material Agreement (Jun 24, 2014)

Filed June 24, 2014For Securities:PLDPLDGP

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.

Frequently Asked Questions

The primary purpose of this filing is to report Prologis, Inc.'s entry into a new material definitive agreement, specifically a Senior Term Loan Agreement, which provides significant borrowing capacity for its operating subsidiary and affiliates.

The initial maximum borrowing amount is €500,000,000. However, an 'accordion feature' allows this amount to be increased up to €1,000,000,000 under certain conditions.

The interest rate, specifically the spread over LIBOR, will vary based on the public debt ratings assigned to Prologis, Inc. from time to time. This means the cost of borrowing can fluctuate with the company's creditworthiness.

The new Senior Term Loan Agreement dated June 19, 2014, replaces and terminates the previous Senior Term Loan Agreement that was dated February 2, 2012. The new agreement is on substantially similar terms regarding covenants and defaults.