ProLogis, 28 banks recast EUR 1.5b loan agreements

Global industrial property specialist ProLogis said on Thursday that it has recast or amended about $2.2 bn (EUR 1.5 bn) in senior credit agreements. The announcement comes a week after ProLogis completed a merger with peer AMB Corporation.

ProLogis has entered into a $1.75 bn global senior credit agreement, subject to currency fluctuations, with a syndicate of 20 banks. An accordion feature will allow ProLogis to increase the credit facility to $2.75 bn, subject to obtaining additional lender commitments. Funds may be drawn in US dollars, euros, Japanese yen, British pound sterling and Canadian dollars. The agreement is scheduled to mature on 3 June 2015.

However, the company may extend the maturity date to June 2016, subject to certain conditions and payment of an extension fee.

Pricing under the facility, including the spread over LIBOR and the rates applicable to facility fees and letter of credit fees, is based upon the public debt ratings of the company's operating partnership and is currently at LIBOR plus 170 basis points. This represents a reduction of 180 basis points from the pricing of the prior ProLogis global credit facility in place immediately prior to the closing of the merger.

ProLogis also entered into a JPY36.5 bn ($456 mln or EUR 313 mln) amended and restated revolving credit agreement with a syndicate of eight banks. The agreement matures on 1 March 2014, but the company may extend the maturity date to February 2015, subject to certain conditions and payment of the fee.

An accordion feature will allow ProLogis to increase the credit facility to JPY65 bn, subject to obtaining additional lender commitments.

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