Published on 8/7/2020 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Prologis details $1.25 billion two-part offering of notes, including prices, yields
By Devika Patel
Knoxville, Tenn., Aug. 7 – Prologis, LP offered further details, including the prices and yields, about a $1.25 billion sale of fixed-rate notes (A3/A-A-) that priced in in two tranches on Thursday, including a green bond, according to an FWP filed with the Securities and Exchange Commission.
The 1.25% green notes due Oct. 15, 2030 priced in a $750 million tranche at a spread of 75 basis points over Treasuries. These notes priced at 99.62 to yield 1.29%.
Initial price talk was in the 105 bps spread area.
The company sold $500 million of 2.125% 30-year notes at a Treasuries plus 100 bps spread. These notes priced at 98.438 to yield 2.196%.
Initial talk was in the 130 bps spread area.
BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.
Proceeds from the green tranche will be used to finance or refinance the eligible green project portfolio, for general corporate purposes and debt repayment.
Proceeds from the second tranche will be used to redeem the company’s 4.25% notes due 2023 with the remainder used for general corporate purposes, including debt repayment.
The logistics real estate company is based in San Francisco.
| Issuer: | Prologis, LP
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| Amount: | $1.25 billion
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| Description: | Fixed-rate notes
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
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| Senior co-managers: | MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
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| Co-managers: | Academy Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc., BBVA Securities Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Regions Securities LLC and Truist Securities, Inc.
|
| Trade date: | Aug. 6
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| Settlement date: | Aug. 20
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
|
|
|
| 10-year notes
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| Amount: | $750 million
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| Description: | Green notes
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| Maturity: | Oct. 15, 2030
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| Coupon: | 1.25%
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| Price: | 99.62
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| Yield: | 1.29%
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| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until July 15, 2030, then a par call
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| 30-year notes
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| Amount: | $500 million
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| Description: | Notes
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| Maturity: | Oct. 15, 2050
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| Coupon: | 2.125%
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| Price: | 98.438
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| Yield: | 2.196%
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| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until April 15, 2050, then a par call
|
| Price guidance: | Treasuries plus 130 bps area
|
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