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Nippon Prologis to prepay ¥40B of loans, issue ¥6B in new debt financing

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Nippon Prologis to prepay ¥40B of loans, issue ¥6B in new debt financing

Nippon Prologis REIT Inc. will prepay two long-term bridge loans worth a combined ¥39.50 billion with ¥6.3 billion of unsecured and nonguaranteed debt financing to be obtained Aug. 8.

Net proceeds from domestic and international offerings, along with cash on hand, will also be used for the proposed prepayment of the ¥27.65 billion and ¥11.85 billion long-term bridge loans borrowed from Sumitomo Mitsui Banking Corp. and The Bank of Tokyo-Mitsubishi UFJ Ltd., respectively.

The borrowings, secured Aug. 1, funded the ¥55.83 billion acquisition of a trust beneficiary interest in three Prologis distribution parks in Japan. The original repayment was scheduled for Aug. 1, 2019.

The new financing comprises two short-term loans of ¥4.41 billion and ¥1.89 billion from Sumitomo Mitsui Banking Corp. and The Bank of Tokyo-Mitsubishi UFJ Ltd., respectively, to be repaid Aug. 8, 2018. The loans will each carry a base rate of one-month Japanese Yen Tokyo Interbank Offered Rate plus 0.17%.

As of Aug. 3, US$1 was equivalent to ¥110.06.