By Andrea Heisinger
New York, March 9 - ProLogis sold $1.1 billion of senior notes (Baa2/BBB-/BBB) late on Tuesday in two tranches after it was originally announced in a single tranche of 10-year notes, a source away from the sale said.
The $300 million of 6.25% seven-year notes was sold at 99.637 to yield 6.317%, or a spread of Treasuries plus 320 basis points.
An $800 million tranche of 6.875% 10-year notes was priced at 99.765 to yield 6.908% and also has a spread of Treasuries plus 320 bps.
Both tranches have a make-whole call at Treasuries plus 50 bps.
Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and RBS Securities Inc. were the bookrunners.
Proceeds, along with proceeds from a concurrent convertible note offering, will be used to repay borrowings under a global credit agreement.
The industrial distribution facility operator is based in Denver.
| Issuer: | ProLogis
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Maturity: | March 15, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., RBS Securities Inc.
|
| Trade date: | March 9
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| Seven-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2017
|
| Coupon: | 6.25%
|
| Price: | 99.637
|
| Yield: | 6.317%
|
| Spread: | Treasuries plus 320 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $800 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 6.875%
|
| Price: | 99.765
|
| Yield: | 6.908%
|
| Spread: | Treasuries plus 320 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
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