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$104.7 million of financing for REIT

By John Rebchook, Rocky Mountain News (Contact)

Published December 3, 2008 at 12:05 a.m.
Updated December 3, 2008 at 12:43 a.m.

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Denver-based ProLogis, the world's largest industrial real estate investment trust, said Tuesday it has closed $104.7 million in financing.

The 10-year financing carries a 6.38 percent coupon rate. The proceeds will be used to refinance $62 million in debt due in January and another $42 million bridge loan from Citigroup, reducing 2009 maturities by about $104 million.

This is part of its cost-cutting plan announced Nov. 13 that includes refinancing or renegotiating debt, halting new developments, shrinking the development pipeline, reducing the dividend and administrative cuts.

Meanwhile, the company's stock gained 26 percent Tuesday, closing at $3.20, up 67 cents.

The company also recently closed on $105.8 million refinancing of debt with a syndicate of banks including Bank of America, Royal Bank of Scotland, ABN AMRO of the Netherlands, Sumitomo Mitsui of Japan and Bank of China. Banc of America Securities was lead arranger of the refinancing.

The financing's pricing is 110 percent of the applicable People's Bank of China base rate, and will mature on Nov. 28, 2011. The debt has two components - a $36.5 million term loan and a $69.4 million revolving line of credit