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Prologis , Inc. (NYSE:PLD), a prominent player in the Industrial REITs industry with a market capitalization of $109 billion and a "GOOD" financial health rating according to InvestingPro, has successfully priced an offering of C$750,000,000 in aggregate principal amount of 4.200% notes due in 2033. The transaction is expected to close today, with the company estimating net proceeds of approximately C$742.6 million.
The notes, which will mature on February 15, 2033, will bear interest at an annual rate of 4.200%. They are being offered under an existing shelf registration statement filed with the Securities and Exchange Commission. The offering was made through an underwriting agreement with Scotia Capital Inc. and TD Securities Inc. This debt management strategy is particularly relevant given the company’s total debt of $30.9 billion and current ratio of 0.26.
Prologis intends to utilize the net proceeds for general corporate purposes, including the potential repayment of borrowings under its global credit lines and possibly other debt. The notes will be senior unsecured obligations of Prologis, L.P. and will be redeemable before November 15, 2032, at a price determined by a specified formula. Starting from the Par Call Date, the notes can be redeemed at 100% of their principal amount.
The indenture governing the notes includes covenants that limit the ability of Prologis, L.P. and its subsidiaries to incur additional indebtedness and to engage in certain mergers, consolidations, or asset sales.
This financial move comes as part of Prologis’s broader strategy to manage its capital and liabilities. The company has a history of Prologis, Inc. as a former entity named AMB Property Corp, which underwent a name change in 1997, and Prologis, L.P., formerly known as AMB Property LP, which changed its name in 1998.
The information provided in this article is based on a press release statement. Notably, InvestingPro data shows that Prologis has maintained dividend payments for 14 consecutive years with a 10.3% dividend growth in the last twelve months, demonstrating strong financial management. For deeper insights into Prologis’s financial health and detailed metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Prologis, a leading industrial REIT, has issued C$750 million in aggregate principal amount of 4.200% notes due 2033, with net proceeds estimated at approximately C$742.6 million. This follows an underwriting agreement with Scotia Capital Inc. and TD Securities Inc. The proceeds are intended for general corporate purposes, including debt repayment. In addition, the company’s fourth-quarter Core Funds from Operations (FFO) exceeded expectations, and it reported a 17% year-over-year increase in its leasing pipeline.
Prologis has also been the subject of several analyst adjustments. KeyBanc Capital Markets maintained its Sector Weight rating, while Raymond (NSE:RYMD) James downgraded the company’s stock rating to Market Perform. Conversely, UBS, RBC Capital Markets, and Truist Securities raised their price targets for Prologis to $137, $128, and $123, respectively, all maintaining Buy ratings. BTIG reiterated its Buy rating, keeping the price target at $134, and Citi also maintained a Buy rating with a $150 price target.
These recent developments highlight Prologis’ robust financial performance and the diverse opinions of analysts from various firms. As always, investors are advised to conduct thorough research and consider multiple sources of information when making investment decisions.
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