ProLogis Closes On $347 Million In Secured Loans

DENVER (AP) — Distribution-facility owner ProLogis said Thursday it has closed on three secured loans totaling $347 million that it will use to pay off other corporate debt.

Denver-based ProLogis said it closed on the loans with two major life insurance companies. ProLogis did not identify the companies in a news release.

Two of the loans, totaling $245 million, are 10-year, interest-only loans, with ProLogis putting up 50 properties in 13 markets as security.

The remaining $102 million loan is a five-year, interest-only loan, with 14 properties in eight markets as security.

Loan proceeds will be used initially to repay line-of-credit borrowing. It will also subsequently help cover refinancing of $285 million of remaining corporate debt maturing this year, and a portion of debt maturing next year.

"The closing of these loans helps us in addressing our corporate refinancing requirements for the remainder of this year and into 2010," said William E. Sullivan, chief financial officer of ProLogis, which leases industrial facilities to manufacturers, retailers and transportation companies in North America, Europe and Asia.

ProLogis announced closure of the loans after its shares rose 7 cents to close at $8.11. In after-hours trading, the stock added another 2 cents, to $8.13.