ProLogis greenshoe exercised, lifting convertibles to $460 million

By Devika Patel

Knoxville, Tenn., March 17 - Underwriters for ProLogis' offering of 3.25% five-year convertible senior notes exercised their over-allotment option in full for $60 million more of the convertibles, increasing the size of the issue to $460 million, the company said in a press release.

As previously reported, the company sold the notes at par of $1,000 in a registered offering on March 9 via joint bookrunners Citigroup Global Markets Inc., Bank of America Merrill Lynch, Goldman Sachs & Co. and RBS Securities Inc.

The notes will have a conversion ratio of 57.8503 and an initial conversion premium of 29%, which is equal to a conversion price of $17.29 per share.

The convertibles are non-callable for life with no puts and include dividend and takeover protection.

Conversion settlement will be in stock only.

Proceeds are earmarked to repay borrowings under ProLogis' global line of credit. The company expects to re-borrow such amounts to fund the cash purchase of certain of its senior notes that are being tendered, for the repayment or repurchase of other debt and for general corporate purposes.

Denver-based ProLogis is a real estate investment trust focused on distribution and retail facilities.

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