ProLogis Closes $104.7 Million Portfolio Financing for ProLogis North American Industrial Fund II
DENVER, Dec. 2 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), a leading global provider of distribution facilities and services, announced today that it has closed a $104.7 million, secured financing with a large institutional investor on behalf of an affiliate of ProLogis North American Industrial Fund II. The ten-year financing has a coupon of 6.38 percent and represents a loan-to-value of approximately 58 percent on five geographically diverse, US industrial properties. The proceeds will be used to refinance a $62 million secured debt facility that was set to mature in January 2009 and pay down $42 million of the Citi bridge debt facility, thereby reducing 2009 maturities in the fund by approximately $104 million.
The company outlined an action plan for investors on November 13th. The plan includes re-financing and/or renegotiating debt maturities on ProLogis' balance sheet and in its property funds, halting new development starts, shrinking the development pipeline, de-levering the balance sheet, and retaining capital through G&A cuts and a reduction of the dividend. "We will continue to report our progress as we execute on our plan," said Bill Sullivan, chief financial officer.
ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 136 markets across North America, Europe and Asia. The company has $40.8 billion of assets owned, managed and under development, comprising 548 million square feet (51 million square meters) in 2,898 properties as of September 30, 2008. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs.
Released December 2, 2008