Summary
Prologis, Inc. (PLD) announced the entry into an Amended and Restated Global Senior Credit Agreement on April 5, 2023, by its operating partnership, Prologis, L.P. This new facility, termed the '2023 Global Facility', replaces the previous agreement from April 2021 and provides significant financial flexibility for the company. The 2023 Global Facility allows for borrowings and letter of credit issuances up to approximately $3.0 billion, with an accordion feature that could increase this amount by an additional $1.0 billion. The facility has a maturity date of June 30, 2027, with options for two six-month extensions. The pricing is variable, based on Prologis, L.P.'s public debt ratings, with a spread of 69 basis points as of the closing date. This updated credit agreement is a crucial element for Prologis's ongoing operational and strategic capital management.
Key Highlights
- 1Prologis, L.P. entered into an Amended and Restated Global Senior Credit Agreement (2023 Global Facility) on April 5, 2023.
- 2The new facility provides for aggregate borrowings and letter of credit issuances up to approximately $3.0 billion.
- 3An accordion feature allows for a potential increase of up to an additional $1.0 billion.
- 4The maturity date for the 2023 Global Facility is June 30, 2027, with two six-month extension options.
- 5Borrowing costs are variable and based on Prologis, L.P.'s public debt ratings, with an initial spread of 69 basis points.
- 6The facility includes customary representations, covenants (including financial tests), and defaults.
- 7Prologis, Inc. itself is not directly guaranteeing the facility unless it incurs or guarantees additional indebtedness.