Summary
Prologis, Inc. (PLD) filed an 8-K on January 26, 2018, detailing a material definitive agreement related to debt financing. Specifically, its operating partnership, Prologis, L.P., priced an offering of €400,000,000 aggregate principal amount of Floating Rate Notes due 2020. These notes are senior unsecured obligations, fully guaranteed by Prologis, Inc., and will bear interest quarterly based on three-month EURIBOR plus 25 basis points. The offering is expected to close on January 29, 2018, with net proceeds estimated at approximately €401 million (or $490 million).
Key Highlights
- 1Prologis, L.P. priced a €400 million offering of Floating Rate Notes due 2020.
- 2The notes are senior unsecured obligations of the Operating Partnership and guaranteed by Prologis, Inc.
- 3Interest on the notes will reset quarterly at three-month EURIBOR plus 25 basis points.
- 4Net proceeds are estimated at approximately €401 million ($490 million) and intended for general corporate purposes, including repaying other indebtedness and short-term borrowings.
- 5The offering is expected to close on January 29, 2018.
- 6The notes are redeemable in whole or in part on or after December 29, 2019.
- 7The filing also includes supplemental information regarding U.S. federal income tax considerations related to the Tax Cuts and Jobs Act (TCJA).
Frequently Asked Questions
The net proceeds from the offering are intended for general corporate purposes, which include repaying or repurchasing other indebtedness. In the short term, the company plans to use the proceeds to repay borrowings under its multi-currency senior term loan.
The notes have a principal amount of €400 million, mature on January 29, 2020, and bear interest quarterly at a rate of three-month EURIBOR plus 25 basis points. They are senior unsecured obligations of Prologis, L.P. and are fully guaranteed by Prologis, Inc.
The issuance and sale of the notes are expected to close on January 29, 2018. The estimated net proceeds are approximately €401 million, or $490 million, based on the euro/U.S. dollar exchange rate as of January 19, 2018.
Yes, the filing includes supplemental information regarding the U.S. federal income tax considerations stemming from the Tax Cuts and Jobs Act (TCJA), which was enacted in late 2017. This information supplements prior tax descriptions for the company, its operating partnership, and their security holders.