SAN FRANCISCO-In an update to a previous story, Prologis Inc.'s operating subsidiary Prologis LP has priced an offering of two series of notes with $1.25 billion aggregate principal amount. Included in the aggregate amount are $400 million of notes due Feb. 15, 2019, that have an annual coupon rate of 2.75% and were priced at 99.965% of the principal amount, and $850 million of notes due August 15, 2023, that have an annual coupon rate of 4.25% and were priced at 99.742% of the principal amount.
The notes will be senior unsecured obligations of the Operating Partnership and will be fully and unconditionally guaranteed by Prologis Inc. The sale of the notes is expected to close on August 15, 2013, subject to customary closing conditions.
The offering has been made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. In the short term, the Operating Partnership intends to use the net proceeds from the sale of the notes to repay borrowings under its global line and to fund the cash purchase of certain senior notes (the "tender offer notes") that are tendered pursuant to its offers to purchase such notes, which commenced on Aug. 8, 2013.
The firm's Q2 numbers showed that the 10-quarter plan is ahead of schedule, according to chairman and CEO Hamid Moghadam. According to Q2 results, core funds from operations per fully diluted share was $0.41 for the second quarter compared to $0.43 for the same period in 2012. Net loss per fully diluted share was less than $0.01 for the second quarter compared to a net loss per share of $0.02 for the same period in 2012. The net loss in the quarter was principally due to costs associated with the early extinguishment of debt, as well as from depreciation on real estate.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
