8-K/AMaterial AgreementsFinancial EventsExhibits & Filings

Prologis, Inc. 8-K/A Report, Material Agreement (Jun 20, 2018)

Filed June 20, 2018For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD), through its operating partnership Prologis, L.P., has filed an 8-K/A amendment on June 20, 2018, to provide additional details and exhibits related to a material definitive agreement. This filing primarily concerns the pricing and execution of an offering for $400 million of 3.875% Notes due 2028 and $300 million of 4.375% Notes due 2048, totaling $700 million in aggregate principal amount. The net proceeds from this debt issuance are estimated to be approximately $688 million, which Prologis intends to allocate towards repaying existing borrowings under its global line of credit and Canadian term loan, as well as for general corporate purposes. This strategic move aims to optimize its capital structure and extend its debt maturity profile. Investors should note the senior unsecured nature of these notes, fully guaranteed by Prologis, Inc., and review the indenture for covenants that may restrict future indebtedness and asset dispositions.

Key Highlights

  • 1Prologis, L.P. priced an offering of $400 million in 3.875% Notes due 2028 and $300 million in 4.375% Notes due 2048.
  • 2The total aggregate principal amount of the Notes offered is $700 million.
  • 3The offering is expected to close on June 20, 2018, with estimated net proceeds of approximately $688 million.
  • 4Proceeds will be used to repay borrowings under the company's global line of credit and Canadian term loan, and for general corporate purposes.
  • 5The Notes are senior unsecured obligations of Prologis, L.P., and are fully and unconditionally guaranteed by Prologis, Inc.
  • 6The indenture governing the Notes includes covenants restricting additional indebtedness and asset dispositions.
  • 7This filing is an amendment to a previous 8-K, primarily adding exhibits related to the underwriting agreement and the notes.

Frequently Asked Questions

This Form 8-K/A is an amendment to a previously filed Current Report on Form 8-K. It is being filed to include exhibits and provide further details related to the pricing and underwriting agreement for a significant debt offering by Prologis, L.P.

Prologis raised $700 million by issuing $400 million of 3.875% Notes due 2028 and $300 million of 4.375% Notes due 2048. The net proceeds, after fees and expenses, are expected to be approximately $688 million.

Prologis intends to use the net proceeds to repay existing borrowings under its global line of credit and its Canadian term loan, as well as for general corporate purposes. This suggests a strategy to refinance existing debt and potentially extend its maturity profile.

The Notes are senior unsecured obligations of Prologis, L.P., and are fully guaranteed by Prologis, Inc. The governing indenture includes covenants that restrict the Operating Partnership's ability to incur additional indebtedness and to merge, consolidate, or dispose of substantially all of its assets.