Prologis, L.P. to Establish ¥55 Billion Unsecured Senior Term Loan Facility

May 21, 2015, 09:00 ET from Prologis, Inc.

SAN FRANCISCO, May 21, 2015 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the global leader in industrial real estate, today announced it has received commitments for more than ¥55 billion (approximately $455 million) unsecured senior term loan facility.

The yen-denominated facility will mature in 2022. As of May 21, 2015, the weighted average interest rate would be approximately 1.2% based on Japanese LIBOR plus 110 basis points at the company's current credit rating. The facility is expected to close in June and is subject to customary closing conditions.

The facility will be the company's third significant capital markets transaction since its April 2015 announcement of a definitive agreement to acquire the assets of KTR Capital Partners and its affiliates. The cumulative principal amount of the three financing transactions will total more than $2.2 billion with a weighted average rate of approximately 1.3% under the applicable LIBOR rates as of May 21, 2015 and a weighted average term of 4.8 years assuming the exercise of extensions at Prologis' option.

"Consistent with our foreign currency hedging strategy and following the strategy used in our eurobond offering last week, we have replaced our short-term yen hedging with this financing which effectively recapitalizes our equity in Japan," said Tom Olinger, chief financial officer, Prologis. "This is the third step in enhancing our liquidity in the U.S., which provides us with more options for funding our share of the purchase price of our anticipated acquisition of assets from KTR."

ABOUT PROLOGIS Prologis, Inc. is the global leader in industrial real estate. As of March 31, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 594 million square feet (55 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,700 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.

FORWARD-LOOKING STATEMENTS The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management's beliefs and assumptions made by management.  Such statements involve uncertainties that could significantly impact 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, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — 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 ("REIT") 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 in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading "Risk Factors." Prologis undertakes no duty to update any forward-looking statements appearing in this document.

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SOURCE Prologis, Inc.



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