ProLogis Closes on $347 Million of Corporate Financings
- Secured Debt Proceeds To Be Used to Address 2009 and 2010 Maturities -
DENVER, June 18 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a leading global provider of distribution facilities, announced today that it has closed on three secured loans totaling $347 million with two major life insurance companies. Two of the loans, totaling $245 million, are ten-year, interest-only, secured corporate financings with 50 properties in 13 markets as security. The remaining $102 million loan is a five-year, interest-only, secured corporate financing with 14 properties in eight markets as security. The proceeds will be used initially to repay line of credit borrowings and subsequently address the refinancing of the $285 million of remaining corporate maturities for 2009 and a portion of 2010 corporate maturities. The average blended interest rate for the three loans is 7.24 percent.
"Since the beginning of the year, we have repurchased approximately $691 million notional amount of corporate notes at a 29 percent discount, effectively de-leveraging by $200 million," said William E. Sullivan, chief financial officer. "The closing of these loans helps us in addressing our corporate refinancing requirements for the remainder of this year and into 2010.
"These secured financings demonstrate our continued ability to access the capital markets and highlight one of the key strengths we believe is often overlooked - our large and geographically diverse base of unencumbered assets. Following planned asset sales, fund contributions and this secured debt financing, we will retain more than $11 billion of unencumbered assets. And while the unsecured debt market has clearly re-opened, this sizeable pool of properties provides us with additional flexibility and may be used as a source for addressing future debt maturities with secured corporate debt, should market conditions dictate," Sullivan concluded.
ProLogis is a leading global provider of distribution facilities, with more than 475 million square feet of industrial space (44 million square meters) in markets across North America, Europe and Asia. The company leases its industrial facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. For additional information about the company, go to www.prologis.com.
Released June 18, 2009