What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce Prologis's entry into a material definitive agreement, specifically an amended and restated revolving credit facility (the "Yen Revolver") for its Japanese subsidiary. This provides investors with transparency into the company's financing activities and liquidity arrangements.

How much capital can Prologis access through this new Yen Revolver?

Initially, the Yen Revolver allows for borrowing up to JPY 50.0 billion, which was approximately USD $440 million based on the exchange rate on February 16, 2017. The facility can be increased up to JPY 65.0 billion (approximately USD $572 million) under certain conditions.

When does this credit facility mature, and are there extension options?

The Yen Revolver is scheduled to mature on February 16, 2021. However, Prologis's Operating Partnership has the option to extend the maturity date by one year to February 16, 2022, subject to payment of an extension fee.

How is the interest rate determined for borrowings under the Yen Revolver?

The pricing, including the spread over LIBOR and applicable facility fees, varies based on the public debt ratings of Prologis's Operating Partnership. As of the closing date of the agreement, the spread was set at 40 basis points.

PLD/PLDGP 8-K: Material Agreements & Financial Events

Summary

Prologis, Inc. (PLD) filed an 8-K on February 21, 2017, to disclose a material definitive agreement related to its financing activities. The report details the Fifth Amended and Restated Revolving Credit Agreement (the "Yen Revolver") entered into by its subsidiary, Prologis Marunouchi Finance Investment Limited Partnership, with various lenders, including Sumitomo Mitsui Banking Corporation as Administrative Agent. This agreement provides access to JPY 50.0 billion (approximately USD $440 million), with an option to increase to JPY 65.0 billion (approximately USD $572 million). This facility enhances Prologis's liquidity and financial flexibility, particularly for its Japanese operations. The Yen Revolver has a maturity date of February 16, 2021, with a one-year extension option. The pricing is tied to Prologis's public debt ratings, with an initial spread of 40 basis points over LIBOR. The agreement includes customary covenants and cross-acceleration provisions, ensuring robust financial oversight and risk management.

Key Highlights

1Prologis subsidiary entered into a Fifth Amended and Restated Revolving Credit Agreement (Yen Revolver).
2The facility provides initial borrowing capacity of JPY 50.0 billion (approx. USD $440 million).
3There is an option to increase the facility size to JPY 65.0 billion (approx. USD $572 million).
4The Yen Revolver matures on February 16, 2021, with a one-year extension option available.
5Pricing is variable, based on Prologis's public debt ratings, with an initial spread of 40 basis points over LIBOR.
6Prologis, Inc. and its Operating Partnership are guarantors of all obligations under the Yen Revolver.
7The agreement contains customary representations, covenants, and defaults, including cross-acceleration to other significant indebtedness.

Prologis, Inc. 8-K Report, Material Agreement (Feb 22, 2017)

Summary

Key Highlights

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