Summary
Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., announced on October 27, 2015, the pricing of a $750 million offering of 3.750% Notes due 2025. The net proceeds, estimated at $739 million after expenses, are strategically allocated to strengthen the company's balance sheet and optimize its debt structure. A significant portion of these proceeds will be used to repurchase all outstanding principal of its 4.5% Notes due 2017 and to fund a cash tender offer for 6.875% Notes due 2020, 7.375% Notes due 2019, and 6.625% Notes due 2019. This proactive debt management indicates a move to reduce interest expenses and extend debt maturities, which is generally favorable for long-term financial health and investor returns. The remaining proceeds will be used for general corporate purposes, including other debt repayments and to reduce borrowings under credit facilities.
Key Highlights
- 1Prologis, L.P. priced a $750 million offering of 3.750% Notes due November 1, 2025.
- 2Estimated net proceeds from the offering are approximately $739 million.
- 3Proceeds will be used to repurchase all outstanding 4.5% Notes due 2017.
- 4A portion of the proceeds will fund a cash tender offer for 6.875% Notes due 2020, 7.375% Notes due 2019, and 6.625% Notes due 2019.
- 5Remaining proceeds will be used for general corporate purposes, including other debt repayment and reduction of credit facility borrowings.
- 6The Notes are senior unsecured obligations of Prologis, L.P. and are fully guaranteed by Prologis, Inc.
- 7The Notes carry an interest rate of 3.750% per annum, payable semi-annually.