US-based logistics company6 Prologis announced this week that it has closed on a $137.5 mln (EUR 102 mln), five-year, secured financing with a major life insurance company on behalf of its Prologis California Fund. The financing has a loan-to-value of approximately 50% with 21 industrial properties located in the LA Basin and Inland Empire as security. The proceeds were used to wholly refinance a $137 mln secured loan that was set to mature on August 1, 2009.
US-based logistics company6 Prologis announced this week that it has closed on a $137.5 mln (EUR 102 mln), five-year, secured financing with a major life insurance company on behalf of its Prologis California Fund. The financing has a loan-to-value of approximately 50% with 21 industrial properties located in the LA Basin and Inland Empire as security. The proceeds were used to wholly refinance a $137 mln secured loan that was set to mature on August 1, 2009.
Following its action plan outlined in November 2008, ProLogis has taken a number of steps over the last months to 'substantially deleverage and derisk' the company in light of current market conditions. Actions to deleverage the company include eliminating development starts, disposal of assets, buying back debt at a discount, raising public equity and implementing a number of cost-cutting measures. Actions to derisk the company include reducing the development pipeline, exiting emerging markets and simplifying the business. The company claims these initiatives have positioned it 'to substantially meet its debt maturities through 2012 and to address the challenges of the current economic environment.'
Prologis is a leading global provider of distribution facilities, with more than 44 million m2 in markets across North America, Europe and Asia.
