Prologis Completes $1.8 Billion Refinancing Related to Acquisition of DCT Industrial Trust

Black Creek Group, Industrial Property Trust, Prologis, Morgan Stanley & Co., Eastdil Secured, Hogan Lovells, Denver,

SAN FRANCISCO (Sept. 25, 2018) – Prologis, Inc. (NYSE :PLD ), the global leader in logistics real estate, today announced the closing of a ¥55.1 billion senior unsecured note transaction. This activity, in conjunction with previously announced capital market transactions, completes Prologis’ refinancing of $1.8 billion of debt assumed in connection with the acquisition of DCT Industrial Trust.

In aggregate, the refinancings totaled approximately $2.0 billion and included the issuance of:

  • ¥55.1 billion of senior unsecured notes due in 2025, 2028, 2030 and 2038 with an average annual coupon of 0.998% (approximately $500 million USD)
  • €700 million of senior unsecured notes due in 2029 with an average annual coupon of 1.875% (approximately $825 million USD)
  • $700 million of senior unsecured notes due in 2028 and 2048 with an average annual coupon of 4.089%

The blended interest rate associated with the financings was approximately 2.4% with a weighted average term of more than 13 years. The proceeds raised were substantially used to retire $1.8 billion of DCT’s debt, as well as fund certain closing costs related to the acquisition of DCT, with the remainder to pay down other short-term borrowings. The financings will generate an estimated $38 million in annual interest savings.

“Completed within a month of closing the acquisition of DCT, this activity is another example of Prologis’ ability to source capital globally at attractive rates,” said Thomas S. Olinger, chief financial officer, Prologis. “In addition to further increasing our USD net equity exposure, we have extended the duration of our debt stack from 5.0 years to 6.3 years and lowered the company’s weighted average interest rate from approximately 2.9% to 2.8%.”

About Prologis
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 2018, and inclusive of the DCT acquisition on August 22, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 756 million square feet (75 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,500 customers across two major categories: business-to-business and retail/online fulfillment.

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