By Aleesia Forni
Virginia Beach, Va., Aug. 8 - Prologis LP priced $1.25 billion of notes (Baa2/BBB/BBB) on Thursday in 5.5- and 10-year tranches, an informed source said.
Both tranches were sold at the tight end of talk.
A $400 million tranche of 2.75% notes due Feb. 15, 2019 sold at Treasuries plus 140 basis points. The notes priced or 99.965 to yield 2.757%.
The company also priced $850 million of 4.25% 10-year notes with a spread of 170 bps over Treasuries. The notes priced at 99.742 to yield 4.282%.
The company intends to use the proceeds from the sale to repay borrowings under its global line and to fund the cash purchase of senior notes that are tendered under offers to purchase such notes, which commenced on Aug. 8.
The notes are guaranteed by Prologis Inc.
Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.
Denver-based Prologis is an owner, operator and developer of industrial real estate.
Issuer: | Prologis LP
|
Guarantor: | Prologis Inc.
|
Issue: | Notes
|
Amount: | $1.25 billion
|
Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC
|
Trade date: | Aug. 8
|
Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
5.5-year notes
|
Amount: | $400 million
|
Maturity: | Feb. 15, 2019
|
Coupon: | 2.75%
|
Price: | 99.965
|
Yield: | 2.757%
|
Spread: | Treasuries plus 140 bps
|
Price talk: | Treasuries plus 140 bps to 145 bps
|
|
10-year notes
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Amount: | $850 million
|
Maturity: | Aug. 15, 2023
|
Coupon: | 4.25%
|
Price: | 99.742
|
Yield: | 4.282%
|
Spread: | Treasuries plus 170 bps
|
Price talk: | Treasuries plus 170 bps to 175 bps
|
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