Summary
This 8-K filing by Prologis, Inc. (PLD) on June 14, 2018, reports on a significant debt financing transaction executed by its operating partnership, Prologis, L.P. The company's operating arm priced an offering of $400 million in 3.875% Notes due 2028 and $300 million in 4.375% Notes due 2048, totaling $700 million in aggregate principal amount. The net proceeds from this offering, estimated at approximately $688 million after expenses, are earmarked for repaying existing borrowings under the company's global line of credit and a Canadian term loan, with any remaining funds allocated for general corporate purposes. This move suggests Prologis is actively managing its balance sheet, potentially refinancing existing debt at favorable terms and strengthening its liquidity position. The new notes are senior unsecured obligations of the operating partnership, fully guaranteed by Prologis, Inc.
Key Highlights
- 1Prologis, L.P. priced a $700 million debt offering consisting of $400 million in 3.875% Notes due 2028 and $300 million in 4.375% Notes due 2048.
- 2The offering is expected to close on June 20, 2018.
- 3Net proceeds are estimated to be approximately $688 million after deducting underwriting discounts and offering expenses.
- 4Proceeds will be used to repay existing borrowings under Prologis' global line of credit and Canadian term loan, as well as for general corporate purposes.
- 5The Notes are senior unsecured obligations of the Operating Partnership and are fully and unconditionally guaranteed by Prologis, Inc.
- 6The Indenture governing the Notes contains customary restrictions on the Operating Partnership's ability to incur additional indebtedness and to engage in mergers or asset dispositions.
- 7The issuance was made under a shelf registration statement previously filed with the SEC.