Prologis, the global provider of distribution facilities, has announced that it has finalised three secured loans totalling $347 mln (almost EUR 250 mln) with two life insurance companies.
Prologis, the global provider of distribution facilities, has announced that it has finalised three secured loans totalling $347 mln (almost EUR 250 mln) with two life insurance companies.
Two of the loans, totalling $245 mln (EUR 176 mln), are ten-year, interest-only, secured corporate financings with 50 properties in 13 markets as securities.
The remaining $102 mln (EUR 73 mln) loan is a five-year, interest-only, secured corporate financing with 14 properties in eight markets as security.
Prologis said the proceeds will be used initially to repay borrowings and subsequently address the refinancing of the $285 mln 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%.
'Since the beginning of the year, we have repurchased approximately $691 mln notional amount of corporate notes at a 29% discount, effectively de-leveraging by $200 mln," said Prologis chief financial officer William Sullivan. 'The closing of these loans helps us in addressing our corporate refinancing requirements for the remainder of this year and into 2010.'
