FIBRA Prologis Recast its Line of Credit to US$400 Million

May 21, 2015, 15:46 ET from FIBRA Prologis

MEXICO CITY, May 21, 2015 /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL 14), the leading owner and operator of Class-A industrial real estate in Mexico, today announced that it has recast and upsized its line of credit up to US equivalent of $400 million.

FIBRA Prologis recast and upsized its US$250 million secured line of credit into a US$400 million unsecured line of credit with a syndicate of ten banks. An accordion feature will allow FIBRA Prologis to increase the credit facility to US$500 million subject to lender approval. Funds may be drawn in US dollars and US$50 million dollars may be drawn in Mexican peso equivalent. The credit facility is scheduled to mature on May 21, 2018. However, the company may extend the maturity date to May 21, 2019 at Borrowers option, subject to satisfaction of certain conditions. Pricing under the facility is currently at LIBOR plus 225 basis points, which can be adjusted depending on the loan to value of FIBRA Prologis. This represents a reduction of 125 basis points from pricing in the prior line of credit.

"We are very pleased to close an unsecured syndicated line of credit for a FIBRA in Mexico thanks to the strong support from our sponsor and its longstanding relationship banks," said Jorge Girault, vice-president of finance of Prologis Mexico. "The much improved borrowing capacity and flexibility that an unsecured line brings to the operations is a direct result of our strong financial standing and our commitment to add value to our CBFI holders, and is a milestone for Mexican real estate financing market."

FIBRA Prologis is the leading owner and operator of Class-A industrial real estate in Mexico. As of March 31, 2015, FIBRA Prologis was comprised of 184 logistics and manufacturing facilities in six industrial markets in Mexico totaling 31.5 million square feet (2.9 million square meters) of gross leasable area.

The statements in this release that are not historical facts are forward-looking statements. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which FIBRA Prologis operates, management's beliefs and assumptions made by management.  Such statements involve uncertainties that could significantly impact FIBRA Prologis financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature.  All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition activity, development activity, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust ("FIBRA") status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments (viii) environmental uncertainties, including risks of natural disasters, and (ix) those additional factors discussed in reports filed with the "Comision Nacional Bancaria y de Valores" and  the Mexican Stock Exchange by FIBRA Prologis under the heading "Risk Factors." FIBRA Prologis undertakes no duty to update any forward-looking statements appearing in this release.

Non-Solicitation - Any securities discussed herein or in the accompanying presentations, if any, have not been registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and any applicable state securities laws. Any such announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein or in the presentations, if and as applicable.

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