ProLogis European Properties reaffirms commitment to reduce leverage whilst obtaining further amendments to its unsecured credit
05/10/2010
ProLogis European Properties (Euronext: PEPR), one of Europe’s largest owners of modern distribution facilities, announced today that it has received approval from the bank syndicate on its €258 million senior unsecured corporate term loan to partially remove restrictions on dividend payments. As a result, the decision over when to resume paying ordinary dividends is now solely in the hands of the business. Both the Board and Management Company of PEPR reaffirm their intent to continue to retain distributable cash flow for the foreseeable future in order to further deleverage the balance sheet and to ensure a return to an investment grade credit rating.
Peter Cassells, chief executive officer of PEPR, commented: “We are pleased to receive this vote of confidence from our bank syndicate which reflects the progress we have made in improving our liquidity profile and reducing our overall debt levels. Our focus remains firmly fixed on deleveraging the business and returning to investment grade.”
Under the agreed terms, PEPR may pay out up to 50% of distributable cash flow in dividends regardless of its credit rating. Once an investment grade credit rating has been attained, PEPR will then be in a position to distribute up to 90% of its cash flow as dividends.”
In addition, the Tangible Net Worth covenant has been reduced to a minimum of €900 million from €1.0 billion. The margin on the credit facility remains unchanged, currently at 270 basis points over Euribor or Libor.
-Ends-
For further information, please
contact:
Investor relations
Jennifer
Crooke
+44 207 518 8708
jcrooke@prologis.com
Media
M:Communications
Ed Orlebar / Charlotte McMullen
+44 20 7920 2323 or 7920 2349
orlebar@mcomgroup.com /
mcmullen@mcomgroup.com
About ProLogis European Properties
ProLogis European Properties, or PEPR, is one of the largest
pan-European owners of high quality distribution and logistics
facilities. PEPR was established in 1999 as a closed-end, real
estate investment fund, externally managed by a subsidiary of
ProLogis (NYSE: PLD), a leading global provider of industrial
distribution facilities. In September 2006, PEPR was listed on
Euronext Amsterdam.
As at 30 June 2010, PEPR has a portfolio of 232 buildings, covering
4.9 million square metres in 11 European countries, with an
estimated market value of €2.8 billion. The portfolio has an
occupancy level of 93.7% and an average of 3.4 years to the next
lease break or 5.4 years to lease expiry.
2011 Annual Report
