UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549  

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 27, 2019

PROLOGIS, INC.

PROLOGIS, L.P.

(Exact name of registrant as specified in charter) 

Registrants’ Telephone Number, including Area Code: (415) 394-9000

N/A

(Former name or former address, if changed since last report.)  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01 Entry into a Material Definitive Agreement.

On August 27, 2019, Prologis Euro Finance LLC (the “Company”) priced an offering of €600,000,000 aggregate principal amount of its 0.250% Notes due 2027 (the “2027 Notes”), €700,000,000 aggregate principal amount of its 0.625% Notes due 2031 (the “2031 Notes”) and €500,000,000 aggregate principal amount of its 1.500% Notes due 2049 (the “2049 Notes” and, together with the 2027 Notes and the 2031 Notes, the “Notes”). In connection with the offering, the Company and Prologis, L.P. (the “Operating Partnership”) entered into an Underwriting Agreement, dated August 27, 2019 (the “Underwriting Agreement”), with Goldman Sachs & Co. LLC, HSBC Bank plc, J.P. Morgan Securities plc, Morgan Stanley & Co. International plc, BNP Paribas and ING Bank N.V. and the other underwriters named in Schedule A thereto (the “Underwriters”), pursuant to which the Company agreed to sell and the Underwriters agreed to purchase the Notes, subject to and upon the terms and conditions set forth therein. A copy of the Underwriting Agreement has been filed as an exhibit to this Current Report and is incorporated herein by reference.

The Notes are being issued under an indenture dated as of August 1, 2018 (the “Base Indenture”), among the Company, the Operating Partnership and U.S. Bank National Association, as trustee, as supplemented by the first supplemental indenture, dated as of August 1, 2018 (the Base Indenture, as supplemented by the first supplemental indenture, the “Indenture”).

The issuance and sale of the Notes is expected to close on September 10, 2019. The net proceeds to the Company from the sale of the Notes, after the Underwriter’s discount and offering expenses, are estimated to be approximately €1.8 billion, or $2.0 billion, based on the euro/U.S. dollar rate of exchange as of August 23, 2019. The Company intends to lend or distribute the net proceeds to the Operating Partnership or one or more of its subsidiaries, who will use the amounts received by them for the full or partial repurchase, redemption, repayment or other retirement of one or more series of the Operating Partnership’s notes due in 2020 (the “2020 Notes”), which may include the Operating Partnership’s 1.375% Notes due October 7, 2020 and the Operating Partnership’s Floating Rate Notes due January 29, 2020. The Operating Partnership has notified the holders of the 2020 Notes that it will redeem the 2020 Notes on September 27, 2019. In the short-term, the Operating Partnership may also use the net proceeds to repay borrowings under its multi-currency senior term loan. Any remaining net proceeds will be used for general corporate purposes, including to repay or repurchase other indebtedness.

The 2027 Notes will bear interest at a rate of 0.250% per annum and mature on September 10, 2027. The 2031 Notes will bear interest at a rate of 0.625% per annum and mature on September 10, 2031. The 2049 Notes will bear interest at a rate of 1.500% per annum and mature on September 10, 2049. The Notes will be senior unsecured obligations of the Company and will be fully and unconditionally guaranteed by the Operating Partnership.

The Notes will be redeemable in whole at any time or in part from time to time, at the option of the Company, at a redemption price equal to the greater of: (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such Notes matured on June 10, 2027, in the case of the 2027 Notes, June 10, 2031, in the case of the 2031 Notes, or March 10, 2049, in the case of the 2049 Notes (each, the “Applicable Par Call Date” as to the applicable series of Notes) (in each case exclusive of interest accrued to the redemption date) discounted to the redemption date on an annual basis at the then current Treasury Rate plus 20 basis points, in the case of the 2027 Notes, 20 basis points, in the case of the 2031 Notes, or 30 basis points, in the case of the 2049 Notes. In addition, on or after the Applicable Par Call Date, such applicable series of Notes will be redeemable in whole at any time or in part from time to time, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed. In each case, accrued and unpaid interest, if any, will be paid on the Notes being redeemed to, but excluding, the redemption date.

The Indenture governing the Notes restricts, among other things, the Operating Partnership’s and its subsidiaries ability to incur additional indebtedness and to merge or consolidate with any other person or sell, assign, transfer, lease, convey or otherwise dispose of substantially all of its assets.

The Notes are being issued pursuant to the Registration Statement as amended by Post-Effective Amendment No. 1 and Post-Effective Amendment No. 2 (File No. 333-216491) that the Company and the Operating Partnership filed with the Securities and Exchange Commission (the “SEC”) relating to the public offering from time to time of securities of the Company and the Operating Partnership pursuant to Rule 415 of the Securities Act of 1933, as amended. In connection with filing with the SEC a definitive prospectus supplement, dated August 27, 2019, and base prospectus, dated August 24, 2018, relating to the public offering of the Notes and corresponding guarantees, the Company and the Operating Partnership are filing the Underwriting Agreement, the form of the Base Indenture, the form of the First Supplemental Indenture, the form of the Notes and certain other exhibits with this Current Report of Form 8-K as an exhibit to such Registration Statement. See “Item 9.01 – Financial Statements and Exhibits.”

This Current Report does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information under Item 1.01 is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.