Summary
Prologis, Inc. (PLD) filed an 8-K on August 31, 2023, to report the entry into a material definitive agreement and the creation of a direct financial obligation. Specifically, on August 25, 2023, a Japanese subsidiary, Prologis Marunouchi Finance Investment Limited Partnership, entered into the Seventh Amended and Restated Revolving Credit Agreement (the "Yen Revolver") with various lenders. The Operating Partnership, Prologis, L.P., is acting as guarantor for this facility. This filing is significant as it details a new credit facility denominated in Japanese Yen, initially up to JPY 58.5 billion, with an option to increase to JPY 75.0 billion. The facility matures on August 25, 2027, with a one-year extension option. The pricing is variable, based on Prologis, L.P.'s public debt ratings, starting at 34 basis points spread over TIBOR. This provides Prologis with enhanced liquidity and flexibility for its Japanese operations and potential future investments in the region.
Key Highlights
- 1Prologis subsidiary entered into a Seventh Amended and Restated Revolving Credit Agreement (Yen Revolver) for JPY 58.5 billion.
- 2The credit facility has an option to be increased to JPY 75.0 billion.
- 3The maturity date is August 25, 2027, with a one-year extension option.
- 4Pricing is variable, based on public debt ratings, with an initial spread of 34 basis points over TIBOR.
- 5Prologis, L.P. (the Operating Partnership) is providing a guarantee for the obligations under the Yen Revolver.
- 6The agreement includes customary representations, covenants, and default provisions, including a cross-acceleration clause for significant indebtedness.
- 7Additional subsidiaries of the Operating Partnership can become borrowers under this facility.