ProLogis Prices Convertible Senior Notes

DENVER, Nov. 1 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD) announced today that it has priced an offering of $1 billion aggregate principal amount of 1.875% convertible senior notes due 2037. The Company also has granted to the underwriters an option to purchase up to an additional $150 million aggregate principal amount of notes.

The notes are senior obligations of ProLogis. The Company plans to use the proceeds from the sale of the notes to repay a portion of the outstanding balance under its global line of credit, certain other debt and for general corporate purposes.

The notes will bear interest at a rate of 1.875% per annum and mature on November 15, 2037. Prior to October 15, 2012, upon the occurrence of specified events, the notes will be convertible at the option of the holder into cash, common shares or a combination of cash and common shares, at the election of the Company, at an initial conversion rate of 12.1957 shares per $1,000 principal amount of notes. The initial conversion price of approximately $82.00 represents a 20% premium to the closing price of the Company's common shares on November 1, 2007 and is subject to adjustment in certain circumstances. On and after October 15, 2012, the notes will be convertible at any time at the option of the holder into cash, common shares, or a combination of cash and common shares, at the election of the Company, at the conversion rate for such date.

On or after January 15, 2013, the Company may at its option redeem all or part of the notes for cash, provided that the Company must make at least 10 semi-annual interest payments (including the interest payments on May 15, 2008 and November 15, 2012) in full before redeeming any notes. The Company may also redeem all of the notes at any time prior to maturity to the extent necessary to preserve ProLogis' status as a real estate investment trust. Holders may require the Company to repurchase the notes for cash in full on January 15, 2013 and November 15 of 2017, 2022, 2027 and 2032 and at any time prior to their maturity upon a "fundamental change." In connection with any redemption or repurchase, the redemption or repurchase price will be equal to 100% of the principal amount of the notes being redeemed or repurchased plus any accrued and unpaid interest.

Wachovia Securities and Merrill Lynch & Co. are acting as Joint Book-Running Managers for the offering. Copies of the prospectus supplement relating to the offering may be obtained from Wachovia Securities' Equity Syndicate Department, 375 Park Avenue, 4th Floor, New York, NY 10152 or by email at equity.syndicate@wachovia.com; or Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, Attention: Prospectus Department (4th Floor).

This release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About ProLogis

ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 105 markets across North America, Europe and Asia. The company has $34.4 billion of assets owned, managed and under development, comprising 483.0 million square feet (44.9 million square meters) in 2,669 properties as of September 30, 2007. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs more than 1,300 people worldwide.

SOURCE ProLogis

Released November 1, 2007