Prologis issues €1 billion in notes due 2032 and 2037 for general purposes

Published 22/09/2025, 11:34
Prologis issues €1 billion in notes due 2032 and 2037 for general purposes

Prologis, Inc. (NYSE:PLD), a prominent player in the Industrial REITs industry with a market capitalization of $107.25 billion, announced Monday the closing of a €1 billion dual-tranche notes offering through Prologis Euro Finance LLC, according to a statement based on a SEC filing. InvestingPro data shows the company maintains a GOOD financial health score, with 8+ additional insights available to subscribers.

The offering, priced on September 15, consists of €500 million principal amount of 3.250% notes due 2032 and €500 million principal amount of 3.875% notes due 2037. The notes are senior unsecured obligations of the issuer and are fully and unconditionally guaranteed by Prologis, L.P.

Net proceeds from the sale, after underwriter discounts and expenses, are estimated at approximately €989.2 million, or $1.2 billion based on the euro/U.S. dollar exchange rate as of September 5. Prologis intends to lend or distribute the net proceeds to Prologis, L.P. or its subsidiaries, which expect to use the funds for general corporate purposes, including the repayment, repurchase, or tender of other indebtedness. This debt management strategy is particularly relevant given the company’s total debt of $35.3 billion. For detailed analysis of Prologis’s debt structure and financial health, check out the comprehensive research report available on InvestingPro.

The 2032 notes mature on September 22, 2032, with interest at an annual rate of 3.250%. The 2037 notes mature on September 22, 2037, at an annual interest rate of 3.875%. Both series are redeemable in whole or in part at any time at the issuer’s option, subject to specified redemption prices outlined in the indenture.

The offering was made under an underwriting agreement with Banco Bilbao Vizcaya Argentaria, S.A., BNP Paribas, Crédit Agricole Corporate and Investment Bank, J.P. Morgan Securities plc, Morgan Stanley & Co International plc, and other underwriters. The notes are issued under an indenture dated August 1, 2018, as supplemented, with U.S. Bank Trust Company, National Association as trustee.

The indenture includes covenants that restrict Prologis, L.P. and its subsidiaries from incurring additional indebtedness and from certain mergers or asset dispositions. This is noteworthy as InvestingPro data indicates the company’s current ratio stands at 0.62, with short-term obligations exceeding liquid assets. Despite these debt considerations, Prologis has maintained strong dividend payments, having raised its dividend for 11 consecutive years.

This information is based on a statement filed with the Securities and Exchange Commission.

In other recent news, Prologis has closed a €1 billion offering of senior unsecured notes through its subsidiary Prologis Euro Finance LLC. The offering includes €500 million of 3.250% notes maturing in 2032 and another €500 million of 3.875% notes maturing in 2037. Additionally, Prologis announced a significant leadership change, with Lori Palazzolo set to retire as Chief Accounting Officer in April 2026. Trisha Burns, who has been with Prologis since 2010, will take over the role.

Furthermore, Prologis received positive attention from analysts, with BofA Securities upgrading the stock from Neutral to Buy, citing potential for high-single-digit annual growth in funds from operations. BofA also raised its price target to $130.00. Similarly, Scotiabank upgraded Prologis from Sector Underperform to Sector Perform, attributing the decision to stable second-quarter results and increased development starts. Scotiabank set a new price target of $114.00. These developments indicate a period of strategic financial maneuvers and leadership transitions for Prologis.

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