ProLogis stock sale move to trim debt
Written on April 9, 2009
ProLogis Inc. plans to offer 115 million common shares in a registered public offering partly to cut back on borrowing under its global line of credit.
The Denver-based warehouse developer (NYSE: PLD) also says it has repurchased more than $220 million of its senior notes.
ProLogis is the third-largest property management company in the Nashville area, managing about 5.4 million square feet of commercial space, and a major owner of industrial space in Middle Tennessee. It’s properties include the Space Park South and Interchange City distribution centers and I-24 Distribution Center.
The company says it is working to obtain $344 million in new secured financing in the United States, seeking new financing in Japan and is trying to restructure its global line of credit online instant cash advance.
Analysts see the moves as efforts by ProLogis to trim debt and improve its balance sheet. The company recently has been cutting costs and dividends, curtailing new development and selling assets.
ProLogis says the stock sale will help it repay or repurchase debt. It says it will grant underwriters an option to buy another 17.25 million shares to cover any overallotments.
Merrill Lynch & Co., Citi and Deutsche Bank Securities are acting as joint bookrunners for the offering, ProLogis says.
Filed in: money.