Fitch: Prologis notes BBB

Fitch Ratings said it assigned a credit rating of BBB to the €500 million aggregate principal amount of guaranteed notes issued by Prologis, LP, the operating partnership of Prologis, Inc.

The 2026 notes have an annual coupon rate of 3% and were priced at 99.138% of the principal amount to yield 3.087% to maturity or 125 basis points over the mid-swap rate, the agency said.

The notes are senior unsecured obligations of Prologis, LP that are fully and unconditionally guaranteed by Prologis, Inc.

Prologis, Inc. has an issuer default rating of BBB and $100 million preferred stock rating of BB+.

Prologis, LP has an issuer default rating of BBB, along with BBB ratings on its $2 billion global senior credit facility, $6.2 billion senior unsecured notes and $460 million senior unsecured exchangeable notes.

Prologis Tokyo Finance Investment LP has BBB ratings on its ¥45 billion senior unsecured revolving credit facility and ¥10 billion senior unsecured term loan.

The proceeds of the new notes will be used for the redemption of $182 million of 5.625% notes due Nov. 15, 2016, the agency said.

The remaining net proceeds will be used for general corporate purposes, which may include the repayment or repurchase other indebtedness.

Leverage remains elevated for the ratings, though it is expected to decline principally via improving property fundamentals, Fitch said.

The ratings are supported by stable cash flow from the company's global industrial real estate portfolio, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.