Summary
Prologis, Inc. (PLD) announced a material definitive agreement through its subsidiary, Prologis Marunouchi Finance Investment Limited Partnership, entering into a Sixth Amended and Restated Revolving Credit Agreement (the "Yen Revolver"). This facility, with Sumitomo Mitsui Banking Corporation as Administrative Agent, allows for borrowing and letter of credit issuance up to JPY 55.0 billion, with an option to increase to JPY 75.0 billion. This amendment and restatement primarily relates to the financing structure for Prologis' Japanese operations, providing a dedicated credit line for its subsidiary. The Yen Revolver matures on July 10, 2024, with a one-year extension option. The terms, including pricing and fees, are tied to Prologis, L.P.'s public debt ratings, with an initial spread of 40 basis points over LIBOR. The agreement includes customary covenants and financial tests for the Operating Partnership and a cross-acceleration clause linked to other recourse indebtedness exceeding USD 150,000,000. This provides Prologis with ongoing access to liquidity for its Japanese ventures under defined terms.
Key Highlights
- 1Prologis subsidiary entered into a Sixth Amended and Restated Revolving Credit Agreement (Yen Revolver).
- 2The facility allows for borrowings and letters of credit up to JPY 55.0 billion, with potential for increase to JPY 75.0 billion.
- 3The maturity date is July 10, 2024, with a one-year extension option available.
- 4Interest rate spread is initially set at 40 basis points over LIBOR, subject to public debt ratings.
- 5The agreement includes financial tests for Prologis, L.P. and a cross-acceleration clause for significant indebtedness.
- 6Prologis, L.P. acts as guarantor for the obligations under the Yen Revolver.
- 7This facility specifically supports Prologis' operations and financing in Japan.