Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced on May 6, 2015, the pricing of a €700 million offering of 1.375% Notes due 2021. The transaction, executed via an Underwriting Agreement with several lead managers, is expected to close on May 13, 2015, with net proceeds estimated at approximately €690 million (or $775 million based on the exchange rate at the time of pricing). These proceeds will be strategically deployed for various corporate purposes, including funding development and acquisitions, particularly a portion for the previously announced KTR Capital Partners transaction. Additionally, proceeds may be used for general corporate needs, co-investment ventures, and debt repayment, including short-term borrowings under its global line and multi-currency senior term loan. The Notes are senior unsecured obligations, fully guaranteed by Prologis, Inc., and bear a coupon of 1.375% with annual interest payments. The offering reflects Prologis's ongoing efforts to manage its capital structure and fund growth initiatives.
Key Highlights
- 1Prologis, L.P. priced a €700 million offering of 1.375% Senior Notes due 2021.
- 2The offering is expected to close on May 13, 2015.
- 3Estimated net proceeds are approximately €690 million (or $775 million USD).
- 4Proceeds will be used for development, acquisitions (including KTR Capital Partners deal), general corporate purposes, co-investment ventures, and debt repayment.
- 5The Notes are senior unsecured obligations and are fully guaranteed by Prologis, Inc.
- 6The notes mature on May 13, 2021, with annual interest payments.
- 7The indenture governing the Notes includes restrictions on additional indebtedness and significant asset dispositions.