ProLogis prices upsized $1 billion 1.875% convertibles due 2037, up 20%

New York, Nov. 1 - ProLogis priced an upsized $1 billion of convertible senior notes due Nov. 15, 2037 with a 1.875% coupon and a 20% initial conversion premium Thursday after the close.

The deal was increased from an announced amount of $875 million.

The coupon and initial conversion premium were the same as talk.

The reoffer price was not announced - the convertibles had been 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 $150 million over-allotment option, increased from $125 million.

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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