(To read more on the debt and equity markets, click here.)
DENVER-Locally based industrial real estate investment trust ProLogis has filed an amendment to a sales agreement for a "shelf agreement" to issue 5.74 million shares of common stock at its discretion. At a recent value of $53.50 per share, that equates to about $307 million in new issuances.
"We have entered into a sales agreement, as amended, with Cantor Fitzgerald & Co. relating to the common shares of beneficial interest," ProLogis execs say in a Securities and Exchange Commission filing.
This amends an agreement that first was filed in July 2004, when ProLogis filed plans to issue as much as 7.4 million shares. Since then, it has issued about 1.7 million shares, leaving it with about 5.7 million shares. But that doesn't mean that it will issue the 5.7 million shares.
A ProLogis representative explains to GlobeSt.com that there has been a fairly recent change in securities laws, which allows some companies to establish themselves as what is known as "well-know, seasoned issuers," or a WKSI. A WKSI can file for shelf registrations that are "basically open-ended, with no ceilings on them; there is no limit on equity or debt," the source says.
The idea is to let a company issue smaller amounts of equity or debt for corporate purposes, with less disclosure. For example, if a company like ProLogis needed to raise $25 million for corporate purposes, it could carve those new shares out of a previous shelf registration, without having to jump through as many technical filing hoops as before.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
