Summary
Prologis, Inc. (PLD) announced on April 15, 2021, the entry into a new Global Senior Credit Agreement by its operating partnership, Prologis, L.P. This agreement establishes a revolving credit facility with an initial aggregate amount of approximately $1.002 billion, which can be expanded up to $2 billion through an accordion feature. The facility provides flexibility for the company to access capital through loans and letters of credit in various currencies, supporting its ongoing operational and strategic needs. The initial tranches consist of a $600 million U.S. Dollar Tranche and a Euro Tranche equivalent to approximately €338 million. The facility matures on April 15, 2024, with options to extend for two additional six-month periods. Pricing is variable, based on Prologis, L.P.'s public debt ratings, with an initial spread of 71.5 basis points over LIBOR. The agreement includes standard covenants and financial tests, and importantly, Prologis, Inc. is only required to guarantee the debt under specific circumstances, offering a degree of separation for the parent company.
Key Highlights
- 1Prologis, L.P. entered into a new Global Senior Credit Agreement on April 15, 2021.
- 2The credit facility has an initial aggregate amount of approximately $1.002 billion, with an accordion feature allowing an increase up to $2 billion.
- 3The facility offers revolving loans and letters of credit in various currencies.
- 4Initial tranches include a $600 million USD tranche and a Euro tranche of approximately €338 million.
- 5The agreement matures on April 15, 2024, with potential for two six-month extensions.
- 6Pricing is tied to Prologis, L.P.'s public debt ratings, starting at 71.5 basis points over LIBOR.
- 7Prologis, Inc. has limited guarantee obligations under the agreement, contingent on incurring new indebtedness or guarantees.