Home Featured Prologis LP Prices $700M Offering of Guaranteed Notes due 2028 and 2048

Prologis LP Prices $700M Offering of Guaranteed Notes due 2028 and 2048


San Francisco-based Prologis Inc. revealed that its operating subsidiary Prologis LP has priced an offering of two series of notes in an aggregate principal amount of $700 million, consisting of $400 million aggregate principal amount of its 3.875% notes due September 15, 2028, priced at 99.320% of the principal amount, and $300 million aggregate principal amount of its 4.375% notes due September 15, 2048, priced at 98.782% of the principal amount.  

The notes, according to a prepared statement, will be senior unsecured obligations of the operating partnership and will be fully and unconditionally guaranteed by Prologis Inc. The sale of the notes is expected to close on or about June 20, 2018, subject to customary closing conditions.           

The operating partnership intends to use the net proceeds to repay borrowings under its global line of credit and its Canadian term loan, as well as for general corporate purposes.

The joint book-running managers for the offering are Citigroup Global Markets Inc., HSBC Securities Inc., Wells Fargo Securities LLC and Scotia Capital Inc.

Prologis Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of March 31, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 683 million square feet (63 million square meters) in 19 countries.

Prologis Inc. has been in the news lately. As The REIT Wire recently reported, the company and DCT Industrial Trust Inc. have entered into a definitive merger agreement by which Prologis will acquire DCT for $8.4 billion in a stock-for-stock transaction, including the assumption of debt. The boards of directors of both companies have unanimously approved the transaction. “For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” said Prologis chairman and chief executive officer Hamid R. Moghadam. “This high level of strategic fit will allow us to capture significant scale economies immediately. In addition, our current platform initiatives, particularly in the areas of advanced analytics, customer experience and procurement and ancillary revenues, will enable us to extract significant upside from the combined portfolios.”