ProLogis launches $875 million 1.875% convertibles due 2037, up 20% with reoffer price of 98.25-98.75

By Evan Weinberger

New York, Oct. 31 - ProLogis launched $875 million of convertible senior notes due Nov. 15, 2037 with a 1.875% coupon and a 20% initial conversion premium Wednesday after the market close. The convertibles are being talked at a reoffer price of 98.25 to 98.75.

Merrill Lynch and Wachovia are the joint bookrunners of the registered transaction.

There is a $125 million over-allotment option.

The convertibles are set to price Thursday after the market close.

The convertibles have call protection for the first five years, and there are puts in 2012, 2017, 2022, 2027 and 2032. There is a contingent conversion subject to a 130% hurdle.

The convertibles carry dividend protection and a change-of-control put.

ProLogis is a Denver-based real estate investment trust and the world's largest owner, manager and developer of industrial distribution centers. The company plans to use the proceeds to repay a portion of its outstanding debt under its global credit line and for general corporate purposes.

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