New York-listed Prologis has entered into a fourth amendment to its existing global senior credit agreement dating from October 2005.
New York-listed Prologis has entered into a fourth amendment to its existing global senior credit agreement dating from October 2005.
The amendment reduces the aggregate amount of the current commitments to approximately $2.25 bn (EUR 1.7 bn) consistent with the commitments effective on and after 6 October 2010.
The amendment also eliminates the borrowing base covenant and replaces it with a debt yield covenant that requires the company to maintain a ratio of net operating income from certain unencumbered properties to certain specified debt, as of the last day of each fiscal quarter, of at least 14%.
'Reducing the total commitment on the line now to match our extended commitments right sizes the facility for the company's current business model,' said William Sullivan, chief financial officer for ProLogis. 'We also believe the terms of the fourth amendment better align our senior credit facility covenants with current market terms.'
