Summary
Prologis, Inc., through its subsidiary Prologis Yen Finance LLC, announced on September 13, 2018, the pricing of a significant offering of Japanese Yen-denominated notes. This issuance includes ¥5,000,000,000 in 0.652% Notes due 2025, ¥40,000,000,000 in 0.972% Notes due 2028, ¥5,100,000,000 in 1.077% Notes due 2030, and ¥5,000,000,000 in 1.470% Notes due 2038, totaling approximately ¥54.7 billion (roughly $491 million USD). The primary purpose of this offering is to repay short-term borrowings incurred to partially fund the redemption of notes from the recently acquired DCT Industrial Operating Partnership LP. This strategic move demonstrates Prologis's proactive approach to managing its capital structure following a significant acquisition. The new notes, which are senior unsecured obligations and guaranteed by Prologis, L.P., carry relatively low interest rates, reflecting favorable market conditions for the company. Investors should note that the proceeds are earmarked for debt reduction, specifically related to the DCT merger, with any remaining funds designated for general corporate purposes. The filing also incorporates the Underwriting Agreement and outlines the terms of the notes, including their maturity dates, interest rates, and covenants restricting the Operating Partnership's ability to incur additional debt or dispose of assets.
Key Highlights
- 1Prologis Yen Finance LLC priced an offering of ¥54.7 billion (approx. $491 million USD) in Japanese Yen-denominated notes.
- 2The notes are structured with varying maturities (2025, 2028, 2030, 2038) and coupon rates ranging from 0.652% to 1.470%.
- 3Proceeds will be used to repay short-term borrowings, which were themselves used to partially fund the redemption of DCT notes acquired in a recent merger.
- 4The notes are senior unsecured obligations of Prologis Yen Finance LLC, fully guaranteed by Prologis, L.P.
- 5The issuance is part of the company's capital management strategy following the acquisition of DCT Industrial Operating Partnership LP.
- 6The indenture governing the notes includes covenants restricting the Operating Partnership's ability to incur additional indebtedness and dispose of assets.