Published: March 10, 2010
Fitch Rates ProLogis' $1.1B Sr Notes & $400MM Sr Convertible Notes 'BBB'; Outlook Negative
NEW YORK - (BUSINESS WIRE) - Fitch Ratings assigns the following credit ratings to ProLogis (NYSE:
PLD):
--$800 million principal amount senior notes due 2020, with a coupon
rate of 6.875%, 'BBB';
--$300 million principal amount senior notes due 2017 with a coupon rate
of 6.25%, 'BBB';
--$400 million principal amount senior convertible notes due 2015 with a
coupon rate of 3.25% and an initial conversion price of $17.29
representing a 29% premium to ProLogis' share price on March 9, 2010,
'BBB'.
The proceeds of the offerings will be used to repay outstanding
borrowings, including to fund the cash purchase of up to $542.9 million
of certain senior notes that are tendered pursuant to a tender offer
announced on March 8, 2010, to repay borrowings under ProLogis' global
line of credit, and for general corporate purposes.
Fitch currently rates ProLogis as follows:
--Issuer Default Rating (IDR) 'BBB';
--Global line of credit 'BBB' (the global line has a current commitment
size of $3.8 billion that was extended to October 2012, and will have a
commitment size of $2.25 billion after October 2010);
--$4.6 billion senior notes 'BBB';
--$2.5 billion convertible senior notes 'BBB';
--$350 million preferred stock 'BB+'.
The Rating Outlook is Negative.
For additional information, please refer to Fitch's Credit Analysis
report, 'ProLogis,' dated Jan. 13, 2010, at 'www.fitchratings.com.'
Formed in 1991, ProLogis is real estate investment trust (REIT) that
owns industrial distribution facilities. As of Dec. 31, 2009, ProLogis
owned and managed 480 million square feet of properties across North
America, Europe and Asia, and its total investment in its direct-owned
properties and properties owned by property funds and joint ventures was
$35.1 billion. As of Dec. 31, 2009, ProLogis had $18.6 billion in
undepreciated book assets, a total market capitalization of $14.8
billion, and an equity market capitalization of $6.8 billion.
Applicable criteria available on Fitch's website at www.fitchratings.com:
--'Equity Credit for Hybrids & Other Capital Securities - Amended,' Dec.
29, 2009;
--'Rating Hybrid Securities', Dec. 29, 2009;
--'Recovery Rating and Notching Criteria for REITs,' Dec. 23, 2009;
--'Corporate Rating Methodology,' Nov. 24, 2009;
--'Updated Criteria for U.S. Equity REIT Risk-Adjusted Earnings,' Aug.
10, 2009;
--'Updated Criteria for U.S. Equity REIT Capital Standards,' Nov. 11,
2007;
--'Criteria for Rating U.S. Equity REITs, Aug. 9, 2007.
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE.
Fitch Ratings, New York
Sean Pattap, 212-908-0642
Janice Svec,
212-908-0304
or
Media Relations:
Sandro Scenga,
212-908-0278
Email: sandro.scenga@fitchratings.com
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