DOW JONES NEWSWIRES
ProLogis (PLD) amended its $3.6 billion senior-credit facility,
allowing the warehouse real-estate investment trust to close a $600
million credit line which was going to end Oct. 6 and get an
additional 22 months of financing.
Shares recently rose 4% to $10.39. The stock is down about 76%
the past year, most in the latter part of 2008.
Under the new terms, Prologis's senior credit facility will
shrink to $2.25 billion after October 2010 while the maturiity is
extended to August of 2012. Nineteen lenders have agreed to provide
that funding, which can be increased $500 million to $2.75 billion
subject to obtaining further lender commitments.
The financing package comes as ProLogis has gone on a
debt-reduction binge in recent months, cutting its leverage the
past nine months nearly $3 billion. The company undertook a
debt-fueled growth spurt in recent years that included acquisitions
and speculative construction.
Meanwhile, ProLogis has sold some $5 billion in assets and stock
while repurchasing $1.2 billion in bonds at a steep discount. A
number of REITs have turned to the capital markets as refinancing
efforts remain challenging as the credit crunch continues.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com