FIBRA Prologis completed a private placement of $500 million in 12‑year senior unsecured notes with a 5.625 % coupon, maturing in 2038. The notes were sold to qualified institutional buyers and are not registered under the U.S. Securities Act.
The company will use the net proceeds, together with cash on hand, to buy back the 4.962 % notes of its subsidiary Terrafina that were due in 2029. The repurchase eliminates the subsidiary debt from the balance sheet and consolidates the debt profile under the parent company’s umbrella. Although the new notes carry a higher coupon than the notes being retired, the longer maturity and the ability to refinance at a single, corporate‑level rate improve the overall debt structure and reduce near‑term refinancing risk.
Credit analysts note that the transaction is leverage‑neutral and that FIBRA Prologis’s key credit ratios—such as debt‑to‑EBITDA and debt‑to‑capital—are expected to remain within the ranges commensurate with its BBB+ rating from S&P Global. The deal therefore preserves the company’s credit standing while extending the maturity of its debt obligations.
The issuance is part of a broader strategy to consolidate the company’s ownership of Terrafina. FIBRA Prologis acquired a controlling stake in Terrafina in August 2024 and has been working to fully integrate the subsidiary. By retiring the subsidiary’s notes, the company removes a layer of debt that would otherwise be reported separately, simplifying its financial statements and aligning its capital structure with its core industrial real‑estate business.
The transaction demonstrates FIBRA Prologis’s continued ability to access capital markets efficiently. The company has a history of successful debt issuances, including a $500 million 10‑year note in November 2025 and a $500 million 5.500 % note due 2035. The new 12‑year notes reinforce the company’s long‑term financing strategy and signal confidence in its cash‑flow generation from Mexico’s Class‑A industrial portfolio.
Overall, the $500 million issuance and subsequent repurchase of Terrafina debt strengthen FIBRA Prologis’s balance sheet, extend its debt maturity, and maintain its credit profile, positioning the company to support future growth and potential acquisitions in the near‑shoring and industrial real‑estate markets.
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