ProLogis Amends Senior Credit Agreement

DENVER (AP) — Distribution-facility owner ProLogis said Monday it has amended an agreement with lenders that reduces its borrowing limit starting in October 2010 and extends the maturity date.

ProLogis' global senior credit facility will continue to have a borrowing capacity of $3.6 billion, subject to currency fluctuations, through Oct. 6, 2010.

After that date, the size will be reduced to $2.25 billion and the maturity date extended to Aug. 21, 2012.

Denver-based ProLogis said it secured commitments from 19 lenders under the amended agreement, which also sets revised pricing terms. Lenders that aren't participating in the amended agreement are subject to existing pricing terms through Oct. 6, 2010.

In connection with the amendment, ProLogis terminated an existing $600 million senior, term-loan facility that had been scheduled to mature Oct. 6, 2009.

One feature of the amended agreement will allow ProLogis to increase its credit facility to $2.75 billion, subject to obtaining additional commitments from lenders.

ProLogis said borrowing under the amended agreement will primarily be used for working capital, capital expenses, development and acquisitions, and other corporate purposes.