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CommentsProLogis, one of the best global suppliers of distribution facility resources, announced that it has closed on three secured loans summing up to $347 million with two primary life insurance firms. Two of the loans, which were worth $245 million, were interest-only and 10-year secured conglomerate financings possessing 50 properties in 13 markets as security. The rest of the $102 million loan was also an interest-only and five-year secured conglomerate financing owning 14 properties in eight markets. The profits are primarily meant to pay back the line of credit borrowings and then address the refinancing of the remaining 2009 corporate maturities worth $285 million, and a portion of the 2010 conglomerate opportunities.
The average blended interest charge for the said loans was 7.24%.
Since the start of 2009, the company has repurchased about $691 million conglomerate notes at a 29% discount, efficiently de-leveraging by $200 million, said ProLogis chief financial officer William E. Sullivan. By closing the loans, the company has successfully worked on their corporate refinancing requirements for the present year all the way to 2010.
Sullivan explained that the secured financings showed ProLogis’ persistent ability to gain access to capital markets and feature one of the strongest points it has often disregarded – the company’s large and diverse base of assets.
He further explained that after the secured debt financing, contribution of funds, and asset sales, the company will be able to maintain unencumbered assets worth over $11 billion. Although the unsecured debt market has been re-established, the large quantity of properties supply the company with extra flexibility that can be utilized as a basis in dealing with upcoming debt maturities with secured conglomerate debt, that is, if market conditions would dictate.
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