Prologis European Properties (PEPR), Europe's largest owner of modern distribution facilities, said on Wednesday that it has established a new EUR 900 mln senior unsecured credit facility. The credit line was arranged through a syndicate of 19 banks led by Bank of America Securities and ABN Amro.
Prologis European Properties (PEPR), Europe's largest owner of modern distribution facilities, said on Wednesday that it has established a new EUR 900 mln senior unsecured credit facility. The credit line was arranged through a syndicate of 19 banks led by Bank of America Securities and ABN Amro.
Prologis said the facility, which may be expanded up to EUR 1.15 bn through additional commitments, replaces PEPR's existing EUR 800 mln credit facility, due in December 2007, and a EUR 400 mln facility, due in June 2008. Concurrent with the creation of this new credit line, PEPR borrowed some EUR 384 mln to repay its outstanding debt under the previous credit and bridge facilities. The weighted average margin under the new facility is 61bps over Euribor.
Peter Cassells, chief financial officer, commented: 'We are pleased to be able to report the closing of this new facility which increases the size of our credit line, lengthens the average term remaining on outstanding debt and allows us to continue to build on the financial and operational successes we've already achieved. We are delighted with this vote of confidence from the global banking community as the facility was significantly oversubscribed, especially in the current difficult credit market. It is further affirmation of our successful business model and the outstanding quality of our pan-European portfolio.'
