HG bonds: Prologis targets 2025 notes with new offering; terms

ProLogis Ltd. Partnership today completed a $400 million offering of 1.625% 10-year notes due March 15, 2031, at T+55, or 1.689%.

The issue was printed in line with the at-the-number guidance and through initial whispers at T+70-75.

Proceeds will be used to redeem the issuer's 3.75% notes due November 2025, of which $750 million is outstanding and any remaining proceeds will be used for general corporate purposes, according to regulatory filings.

Prologis last tapped the market in August 2020, when it placed a $1.25 billion, two-part offering across $750 million of 1.25% 10-year notes due Oct. 15, 2030, at T+75, or 1.29%; and $500 million of 2.125% 30-year notes due Oct. 15, 2050, at T+100, or 2.196%. For reference, the 2030 issue traded yesterday at a G-spread of 53 basis points, according to MarketAxess.

The issuer is a subsidiary of San Francisco-based parent Prologis Inc., which is a real estate investment trust that focuses on high-barrier, high-growth markets.

Prologis' A-/A3 senior unsecured ratings reflect stable outlooks on both sides.

In April 2020, S&P Global Ratings said that despite the expectation for some deceleration in cash same-property net operating income growth from rent abatements in 2020 and weaker occupancy due to increased bankruptcies, industrial fundamentals should remain stable over the next 12 to 24 months.

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