Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced on October 1, 2014, the pricing of a significant debt offering. The company successfully priced €600,000,000 (approximately $751 million) of 1.375% Notes due 2020. This offering, executed via an Underwriting Agreement with several lead managers, represents a strategic move to secure long-term financing at a favorable interest rate.
Key Highlights
- 1Prologis, L.P. priced an offering of €600,000,000 in aggregate principal amount of 1.375% Notes due 2020.
- 2The offering is expected to close on October 7, 2014, with net proceeds estimated at approximately €596 million (about $751 million).
- 3Proceeds are earmarked for general corporate purposes, including European property acquisition and development, and investments in European co-investment ventures.
- 4In the short term, proceeds will be used to repay borrowings under the company's global line of credit and/or multi-currency senior term loan.
- 5The Notes are senior unsecured obligations of Prologis, L.P. and are fully and unconditionally guaranteed by Prologis, Inc.
- 6The Notes bear a fixed annual interest rate of 1.375% and mature on October 7, 2020.
- 7The Indenture governing the Notes includes customary restrictions on the Operating Partnership's ability to incur additional indebtedness and dispose of assets.
Frequently Asked Questions
This 8-K filing announces the pricing of a new debt offering by Prologis, L.P. for €600,000,000 of 1.375% Notes due 2020. It details the terms of the offering, the underwriting agreement, and the intended use of the proceeds.
The net proceeds are intended for general corporate purposes, with a specific focus on acquiring and developing European properties and increasing investments in European co-investment ventures. In the immediate term, the funds will be used to reduce outstanding borrowings under the company's credit facilities.
The Notes have a principal amount of €600,000,000, a fixed annual interest rate of 1.375%, and mature on October 7, 2020. They are senior unsecured obligations of Prologis, L.P. and are fully guaranteed by Prologis, Inc. Interest is payable annually.
While the issuance adds to the company's debt, the notes are being used for strategic investments and to refinance existing debt, which could improve the company's capital structure. The governing indenture does contain restrictions on incurring additional debt and asset disposals, which are standard for such agreements.