By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., June 27 – Prologis, LP priced an offering of notes in three parts, two new tranches of fixed-rate notes and an add-on tranche (A3/A), according to FWPs filed with the Securities and Exchange Commission and a market source.
The $750 million of 4.875% notes due June 15, 2028 priced at 99.389 plus accrued interest from June 28, if any, to yield 5.016%, or at Treasuries plus 105 basis points. The notes were talked in the Treasuries plus 130 bps area.
The $750 million of 5.125% notes due Jan. 15, 2034 priced at 99.642 plus accrued interest from June 28, if any, to yield 5.169%, or at Treasuries plus 145 bps. Price talk was in the Treasuries plus 165 bps area.
The company also issued an add-on tranche of $500 million of its 5.25% notes due June 15, 2053. The notes priced at 97.348 plus total accrued interest to yield 5.43%, or at Treasuries plus 160 bps. The add-on was talked in the Treasuries plus 185 bps area.
The additional notes constitute a further issuance of the company’s 5.25% notes due 2053 and will form a single series with the existing $450 million of notes issued on March 30.
Each tranche features an optional make-whole call until some months prior to maturity, followed by an optional par call.
The 2028 notes are callable before May 15, 2028 with a Treasuries plus 20 bps premium and for the last month at par.
Before Oct. 15, 2033, three months prior to maturity, the 2034 notes are callable with a Treasuries plus 25 bps premiums, then after at par.
The 2053 notes are callable with a Treasuries plus 25 bps make-whole premium until six months prior to maturity, Dec. 15, 2052, and after that date at par.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes, including funding a portion of an acquisition of real estate assets and repayment of any borrowings under the company’s global lines of credit used for the acquisition.
Prologis is a real estate investment trust based in San Francisco.
| Issuer: | Prologis, LP
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| Amount: | $2 billion
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| Issue: | Notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc.
|
| Senior co-managers: | BBVA Securities Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Regions Securities LLC, Scotia Capital (USA) Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Loop Capital Markets LLC, Morgan Stanley & Co. LLC, Samuel A. Ramirez & Co., Inc. and Standard Chartered Bank
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Mayer Brown LLP
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| Counsel to bookrunners: | Sidley Austin LLP
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| Trade date: | June 26
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| Settlement date: | June 28
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| Ratings: | Moody’s: A3
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| S&P: A
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|
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| 2028 notes
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| Amount: | $750 million
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| Maturity: | June 15, 2028
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| Coupon: | 4.875%
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| Price: | 99.389
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| Yield: | 5.016%
|
| Spread: | Treasuries plus 105 bps
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| Call features: | Make-whole call before May 15, 2028 at Treasuries plus 20 bps; after at par
|
| Price talk: | Treasuries plus 130 bps area
|
| Cusip: | 74340XCG4
|
|
|
| 2034 notes
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| Amount: | $750 million
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| Maturity: | Jan. 15, 2034
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| Coupon: | 5.125%
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| Price: | 99.642
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| Yield: | 5.169%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Oct. 15, 2033 at Treasuries plus 25 bps; after at par
|
| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 74340XCH2
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|
|
| 2053 add-on
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| Amount: | $500 million
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| Maturity: | June 15, 2053
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| Coupon: | 5.25%
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| Price: | 97.348
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| Yield: | 5.43%
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| Spread: | Treasuries plus 160 bps
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| Call features: | Before Dec. 15, 2052 at Treasuries plus 25 bps; after at par
|
| Price talk: | Treasuries plus 185 bps area
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| Cusip: | 74340XCF6
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| Total issue: | $950 million, including $450 million issued on March 30
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