ProLogis European Properties to issue €61 million 10.5% convertible preferreds via rights offering

By Angela McDaniels

Tacoma, Wash., Nov. 16 - ProLogis European Properties will offer €61 million of perpetual convertible preferred units through a rights offering, according to a company news release.

Each preferred will be offered at €5.93, which is equal to the company's revised net asset value per ordinary unit as of Sept. 30.

Existing ordinary unitholders will receive one preferential subscription right for each ordinary unit held and will be able to subscribe for two preferreds in exchange for every 37 rights during the 30-day subscription period.

The preferreds will initially pay a quarterly dividend at the rate of 10.5% per year, which may be deferred.

The preferreds will be convertible into ordinary units at any time.

They will be callable after seven years or within 24 months if there is a change of legal form of the company and if certain conditions are met. Automatic conversion will occur after seven years if certain conditions are met.

Morgan Stanley is the bookrunner and underwriter for the offer. An affiliate of the company's external manager, ProLogis, has committed to a sub-underwriting arrangement for the entire amount of any unsubscribed preferreds.

The proceeds from the offering will be used to reduce outstanding debt and for general corporate purposes.

ProLogis European Properties is a London-based real estate investment fund that owns distribution and logistics facilities. The company is incorporated in Luxembourg and has headquarters in London.

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