By Ronda Fears
Memphis, March 21 - ProLogis priced an upsized $1.1 billion of 30-year convertible senior unsecured notes on Tuesday after the market closed with a 2.25% coupon and a 20% initial conversion premium. It was reoffered at 98.25.
The coupon was at the cheap end of talk, which had put it at 1.75% to 2.25%, while the initial conversion premium was in line with talk of 20%.
The reoffered price was at the middle of the pre-deal range of 98 to 98.5.
There is an over-allotment option for a further $150 million, unchanged in size from the original announcement.
The deal was initially planned at $1 billion.
JP Morgan, Morgan Stanley and UBS Investment Bank are the bookrunners of the Rule 144A offering.
The convertibles are non-callable for the first five years. They may be put in years five, 10, 15, 20 and 25.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There is a net-share settlement feature.
ProLogis, a Denver-based real estate investment trust that focuses on industrial properties, said it will use the proceeds of the deal to partially repay its revolving debt and for general purposes.
| Issuer: | ProLogis
|
| Issue: | Convertible senior unsecured notes
|
| Bookrunners: | JP Morgan, Morgan Stanley and UBS Investment Bank
|
| Amount: | $1.1 billion, up from $1 billion
|
| Greenshoe: | $150 million
|
| Maturity: | April 1, 2037
|
| Coupon: | 2.25%
|
| Price: | Par, reoffered at 98.25
|
| Yield: | 2.25%
|
| Conversion premium: | 20%
|
| Conversion price: | $76.58
|
| Conversion ratio: | 13.0575
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Cash settlement: | Yes
|
| Call protection: | Non-callable for five years
|
| Puts: | On April 1 of 2012, 2017, 2022, 2027 and 2032
|
| Price talk: | 1.75%-2.25%, up 20%; reoffer price 98-98.5
|
| Pricing date: | March 20, after the close
|
| Settlement date: | March 26
|
| Distribution: | Rule 144A
|
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