Debt
PEPR's financing structure utilises secured and unsecured debt sources with a spread of maturities. PEPR hedges its interest rate exposure by swapping floating rate interest payments to fixed rate obligations.
In December 2008, PEPR announced a series of strategic initiatives to reduce debt and improve liquidity. These initiatives included the immediate suspension of dividend payments and the disposal of its investment in PEPF II to substantially improve liquidity.
In April 2009, PEPR repaid early the €335.9 million CMBS debt, due July 2009. There is no further debt to be repaid in 2009 and PEPR is focused on managing the €1 billion of debt maturing in 2010. PEPR intends to use a combination of cash flow from the suspension of dividends and property sales proceeds to reduce total outstanding debt and to use new secured financing to refinance the remaining portions of secured debt.
Debt Rating
The following table gives the current rating assigned to ProLogis European Properties
| Rating Agency |
Date last received | Rating | Outlook |
|---|---|---|---|
| Moody's Investors Service |
June 2009 |
Ba1 |
Negative |
Outstanding Debt
PEPR's outstanding debt as at 30 September 2009 was:
| Drawn amount | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Description | Rating | Issue date | Issue size | Coupon1 | Maturity date | Local ccy | Euros | Swapped rate | Comments |
| Listed on the London Stock Exchange |
|||||||||
| Pan European Industrial Properties Series III S.A | AAA AAA AA |
Feb 2003 | €190.5m | €151m + 35bps €17m + 48bps €23m + 85bps |
May 20102 | €97.0m £48.9m |
€174.4m | 4.61% | 100% swapped LTV: 55.7% |
| Pan European Industrial Properties Series IV S.A | AAA AA AAA |
Mar 2005 | €389.0m | €337m + 14bps €32m + 18bps €20m + 30bps |
May 20102 | €249.8m £17.6m |
€275.3m | 3.58% | 100% swapped LTV: 57.7% |
| Listed on the Luxembourg Stock Exchange | |||||||||
| ProLogis International Funding S.A. | Ba1 | Oct 2007 | €500.0m | 5.875% | Oct 2014 | €500.0m | €500.0m | 5.875% | Unsecured Fixed rate |
| Other | |||||||||
| Secured bank loan | - | July 2009 | €126.0m | + 250bps | Mar 2013 | €126.0m | €126.0m | 4.988% | 100% swapped LTV: 48.5% |
| Secured bank loan | - | July 2009 | £86.145m | + 250bps | Jul 2013 | £86.145m | €95.0m | 5.925% | 100% swapped |
| Senior unsecured credit facility | - |
Dec 2007 | €900.0m | €300m + 215bps €300m + 265bps €300m + 270bps |
Dec 2010 Dec 2010 Dec 2012 |
- €300.0m €129.0m €123.5m |
- €300.0m €265.2m |
n\a | Unsecured Floating rate |
| TOTAL | €2,105.5m 86.1m |
€1,735.9m | |||||||
1 All coupons are Euribor+ /Libor+
2 Maturity dates relate to repayment dates rather than legal maturity dates which are typically three years later. It is expected that outstanding debt will be repaid in full on or before the repayment date.
