(PLD) ProLogis to Buy Back $540 Million in Notes

March 9th, 2010

ProLogis (PLD), a leading global provider of distribution facilities, recently launched a cash tender offer to buy back notes with outstanding principal totaling over $540 million. The offer includes 5.5% notes due Apr 2012 and 5.5% notes due Mar 2013, with approximately $281 million and $262 million in outstanding principal, respectively.

In addition to the accrued and unpaid interests, the consideration payable for the 2012 Notes is $1,062.50 per $1,000 principal amount, while that payable for the 2013 Notes is $1,065.00 per $1,000 principal amount. With the tender offer, ProLogis has deleveraged its balance sheet to a large extent.

Year to date, ProLogis has repurchased $165 million of convertible senior notes for total consideration of $152 million. During the same period, ProLogis has issued about 2.2 million common shares at an average price of $12.76 each, generating net proceeds of approximately $28 million.

ProLogis owns and manages interests in over 2,500 distribution facilities spanning 475 million square feet (including properties under development) of space. In response to the economic realities of constrained credit and rapidly deteriorating industrial real estate fundamentals, ProLogis has stopped all new development starts and early-stage developments. The company is currently concentrating on increasing its liquidity and de-leveraging its balance sheet.

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(PLD) ProLogis to Buy Back $540 Million in Notes

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(PLD) ProLogis to Buy Back $540 Million in Notes

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