San Francisco-based industrial real estate investment trust
) recently initiated an at-the-market (ATM) equity-offering
program. The company plans to sell shares up to $750 million
aggregate offering price, from time to time, based on market
conditions and capital requirements.
BofA Merrill Lynch, a corporate and investment banking
Bank of America Corporation
) and Citigroup Global Markets Inc., an operating arm of
) will support Prologis as the managers for the ATM offering.
Prologis plans to use net proceeds from the shares sale for
general corporate purposes - such as funding proposed
acquisitions and investments as well as reducing the debt
We believe that the above-mentioned transaction by Prologis
will provide it financial flexibility and position it favorably
to pursue expansion opportunities, which will go a long way in
enhancing top-line growth. Notably, Prologis have been riding on
a growth trajectory lately, by joining hands with various
retailers for build-to-suit deals. However, the share dilution
impact cannot be ignored.
Last week, the company penned a deal with a retailer for a
build-to-suit facility in Poland. Spanning 376,000 square feet,
this distribution center represents the fourth build-to-suit
project in less than two years at Prologis Park Wroclaw V.
In March 2013, Prologis penned a new build-to-suit agreement
with end-to-end e-Commerce service provider - SpeedFC - a
). The agreement is for a distribution center spanning 770,000
square feet in Etna, Ohio.
Prologis currently carries a Zacks Rank #3 (Hold).
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