Prologis Redeems 2026 & 2029 Notes, Cuts Future Interest Costs

TL;DR

**Prologis is paying off some old debt early, which is good for their balance sheet.**

AI Summary

Prologis, Inc. and Prologis, L.P. filed an 8-K on January 25, 2024, announcing the redemption of all outstanding 3.000% Notes due 2026 and 2.250% Notes due 2029. This means the company is paying back these debts early, which could reduce future interest expenses. For investors, this matters because it signals a proactive approach to managing debt and potentially strengthening the balance sheet, which can be a positive indicator for the stock's long-term stability.

Why It Matters

This debt redemption reduces Prologis's financial obligations and future interest payments, potentially improving profitability and financial flexibility for shareholders.

Risk Assessment

Risk Level: low — Redeeming debt generally reduces financial risk by lowering future obligations and interest expense.

Analyst Insight

A smart investor would view this as a positive sign of proactive financial management, potentially leading to improved earnings per share due to reduced interest expenses. It might be worth looking into Prologis's cash flow and liquidity to understand how these redemptions were funded.

Key Players & Entities

• Prologis, Inc. (company) — registrant of the 8-K filing
• Prologis, L.P. (company) — registrant of the 8-K filing
• 3.000% Notes due 2026 (dollar_amount) — debt being redeemed
• 2.250% Notes due 2029 (dollar_amount) — debt being redeemed
• January 25, 2024 (date) — date of earliest event reported

Forward-Looking Statements

• Prologis's interest expense will decrease in future quarters due to these redemptions. (Prologis, Inc.) — high confidence, target: Q1 2024 earnings report
• The company may issue new debt at potentially lower rates if market conditions are favorable. (Prologis, Inc.) — medium confidence, target: Next 12-18 months

FAQ

Key Financial Figures

• $0.01 — stered Prologis, Inc. Common Stock, $0.01 par value PLD New York Stock Exchan
• $800,000,000 — ating Partnership priced an offering of $800,000,000 aggregate principal amount of its 5.000
• $450,000,000 — % Notes due 2034 (the "2034 Notes") and $450,000,000 aggregate principal amount of its 5.250
• $1.23 billion — nses, are estimated to be approximately $1.23 billion. The Operating Partnership intends to u

Filing Documents

• tm244076d1_8k.htm (8-K) — 55KB
• tm244076d1_ex1-1.htm (EX-1.1) — 256KB
• tm244076d1_ex4-1.htm (EX-4.1) — 28KB
• tm244076d1_ex4-2.htm (EX-4.2) — 37KB
• tm244076d1_ex4-3.htm (EX-4.3) — 28KB
• tm244076d1_ex4-4.htm (EX-4.4) — 40KB
• tm244076d1_ex5-1.htm (EX-5.1) — 15KB
• tm244076d1_ex1-1img001.jpg (GRAPHIC) — 6KB
• tm244076d1_ex5-1img001.jpg (GRAPHIC) — 12KB
• 0001104659-24-006662.txt ( ) — 819KB
• pld-20240125.xsd (EX-101.SCH) — 4KB
• pld-20240125_def.xml (EX-101.DEF) — 28KB
• pld-20240125_lab.xml (EX-101.LAB) — 37KB
• pld-20240125_pre.xml (EX-101.PRE) — 26KB
• tm244076d1_8k_htm.xml (XML) — 10KB

03. Creation of a Direct Financial Obligation or an Obligation

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. Prologis, L.P. (the "Operating Partnership") closed the issuance and sale of the Notes (defined below) on January 25, 2024. The information under Item 8.01 is incorporated herein by reference.

01 Other Events

Item 8.01 Other Events. On January 18, 2024, the Operating Partnership priced an offering of $800,000,000 aggregate principal amount of its 5.000% Notes due 2034 (the "2034 Notes") and $450,000,000 aggregate principal amount of its 5.250% Notes due 2054 (the "2054 Notes" and, together with the 2034 Notes, the "Notes"). In connection with the offering, the Operating Partnership entered into an Underwriting Agreement, dated January 18, 2024 (the "Underwriting Agreement"), with BofA Securities, Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc., as representatives of the several underwriters named in Schedule A thereto (the "Underwriters"), pursuant to which the Operating Partnership agreed to sell and the Underwriters agreed to purchase the Notes, subject to and upon the terms and conditions set forth therein. A copy of the Underwriting Agreement has been filed as an exhibit to this Current Report and is incorporated herein by reference. The Notes are being issued under an indenture, dated as of June 8, 2011 (the "Base Indenture"), among Prologis, Inc. (the "Parent"), the Operating Partnership and U.S. Bank Trust Company, National Association, as successor in interest to U.S. Bank National Association, as trustee, as supplemented by the fifth supplemental indenture, dated as of August 15, 2013 (the Base Indenture, as supplemented by the fifth supplemental indenture, the "Indenture"). The net proceeds to the Operating Partnership from the sale of the Notes, after the Underwriters' discount and offering expenses, are estimated to be approximately $1.23 billion. The Operating Partnership intends to use the net proceeds from the offering of the notes for general corporate purposes, including the repayment of borrowings under its global lines of credit. The 2034 Notes will bear interest at a rate of 5.000% per annum and mature on March 15, 2034. The 2054 Notes will bear interest at a rate of 5

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits . The following documents have been filed as exhibits to this report and are incorporated by reference herein as described above. Exhibit No. Description 1.1 Underwriting Agreement, dated January 18, 2024, between Prologis, L.P., BofA Securities, Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC and SMBC Nikko Securities America, Inc., as representatives of the several underwriters named in Schedule A thereto. 4.1 Form of Officers' Certificate related to the 5.000% Notes due 2034. 4.2 Form of 5.000% Notes due 2034. 4.3 Form of Officers' Certificate related to the 5.250% Notes due 2054. 4.4 Form of 5.250% Notes due 2054. 5.1 Opinion of Mayer Brown LLP. 23.1 Consent of Mayer Brown LLP (included in Exhibit 5.1). 104 Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PROLOGIS, INC. Date: January 25, 2024 By: /s/ Michael T. Blair Name: Michael T. Blair Title: Assistant Secretary and Managing Director, Deputy General Counsel PROLOGIS, L.P. By: Prologis, Inc., its General Partner Date: January 25, 2024 By: /s/ Michael T. Blair Name: Michael T. Blair Title: Assistant Secretary and Managing Director, Deputy General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR