8-KFinancial EventsOther EventsExhibits & Filings

Prologis, Inc. 8-K Report, Financial Obligation (Feb 5, 2020)

Filed February 5, 2020For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) filed an 8-K on February 5, 2020, detailing the pricing of a significant debt offering. The company, through its subsidiary Prologis Euro Finance LLC, priced €1.3 billion in notes across three series: 0.375% Notes due 2028, 1.000% Notes due 2035, and Floating Rate Notes due 2022. The net proceeds, estimated at approximately €1.3 billion or $1.5 billion, are earmarked for specific strategic uses. The primary use of proceeds from the 2028 Notes is to finance or refinance an Eligible Green Project Portfolio, aligning with ESG initiatives. The proceeds from the 2035 and 2022 Notes will be utilized to repurchase, redeem, or repay Prologis, L.P.'s existing 1.375% Notes due May 2021, which the Operating Partnership has already announced it will redeem on March 5, 2020. Any remaining funds will be used for general corporate purposes, including repaying other indebtedness and potentially borrowings under its global line of credit.

Key Highlights

  • 1Prologis priced a multi-tranche Euro-denominated debt offering totaling €1.3 billion (approximately $1.5 billion).
  • 2The offering includes €550 million of 0.375% Notes due 2028, €650 million of 1.000% Notes due 2035, and €150 million of Floating Rate Notes due 2022.
  • 3Net proceeds will primarily fund green projects (2028 Notes) and refinance existing debt, specifically the 1.375% Notes due May 2021 (2035 and 2022 Notes).
  • 4The company announced the redemption of its 1.375% Notes due May 13, 2021, on March 5, 2020, funded by this offering.
  • 5The notes are senior unsecured obligations guaranteed by Prologis, L.P.
  • 6The indenture governing the notes includes restrictions on the Operating Partnership's ability to incur additional indebtedness and merge or dispose of assets.

Frequently Asked Questions

Prologis raised a total of €1.3 billion (approximately $1.5 billion) through the issuance of three series of notes: €550 million of 0.375% Notes due 2028, €650 million of 1.000% Notes due 2035, and €150 million of Floating Rate Notes due 2022.

The proceeds are allocated strategically: net proceeds from the 2028 Notes will be used to finance or refinance an Eligible Green Project Portfolio. Proceeds from the 2035 and 2022 Notes will be used to repurchase, redeem, or repay Prologis, L.P.'s 1.375% Notes due May 13, 2021, which are scheduled for redemption on March 5, 2020. Any remaining proceeds will be used for general corporate purposes, including other debt repayment.

The 2028 Notes bear a fixed interest rate of 0.375% and mature in 2028. The 2035 Notes bear a fixed interest rate of 1.000% and mature in 2035. The 2022 Notes are floating rate notes with interest resetting quarterly based on EURIBOR plus 28 basis points, maturing in 2022. All notes are senior unsecured obligations guaranteed by Prologis, L.P.

Yes, the indenture governing these notes restricts the Operating Partnership and its subsidiaries from incurring additional indebtedness and from merging, consolidating, or selling substantially all of their assets without meeting certain conditions.