By Aleesia Forni
Virginia Beach, Oct. 27 – Prologis LP offered an upsized $750 million issue of 3.75% senior notes (Baa1/BBB+/BBB) due Nov. 1, 2025 on Tuesday at Treasuries plus 180 basis points, according to a source away from the trade.
Pricing was at 99.381 to yield 3.825%.
The notes came at the tight end of guidance that was set in the area of Treasuries plus 185 bps after having tightened from initial price thoughts in the Treasuries plus 205 bps area.
The deal was upsized from $500 million.
Morgan Stanley & Co. LLC, BofA Merrill Lynch and Goldman Sachs & Co. are the joint bookrunners.
The company intends to use proceeds from the sale to repurchase its 4.5% notes due 2017 and to fund a $200 million cash tender offer to purchase its 6.875% notes due 2020, 7.375% notes due 2019 and 6.625% notes due 2019.
In the short term, proceeds will be used to repay outstanding borrowings under a global line of credit and/or a multi-currency senior term loan and for other general corporate purposes, including debt repayment or repurchases.
The notes are guaranteed by Denver-based, Prologis Inc., an owner, operator and developer of industrial real estate.
| Issuer: | Prologis LP
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| Guarantor: | Prologis Inc.
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| Amount: | $750 million, upsized from $500 million
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| Description: | Senior notes
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| Maturity: | Nov. 1, 2025
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co.
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| Coupon: | 3.75%
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| Price: | 99.381
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| Yield: | 3.825%
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| Spread: | Treasuries plus 180 bps
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| Trade date: | Oct. 27
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| Settlement date: | Oct. 30
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| Ratings: | Moody’s: Baa1
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| Standard & Poor’s: BBB+
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| Fitch: BBB
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| Price guidance: | Treasuries plus 185 bps area, tightened from Treasuries plus 205 bps area
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| Distribution: | SEC registered
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