ProLogis, a provider of distribution facilities, has closed on two unsecured credit facilities on behalf of ProLogis European Properties and ProLogis European Properties Fund II.

ProLogis European Properties has finalised a EUR50m, three-year, unsecured credit facility jointly arranged by Deutsche Bank, Morgan Stanley Senior Funding and The Royal Bank of Scotland, which replaces its existing unsecured credit facility due December 2010.

The new facility has a EUR100m accordion increase feature, subject to obtaining additional lender commitments, and has a maturity of 9 August 2013. Pricing for the new facility will range from 225 to 300 basis points over applicable Euribor or Libor, depending upon the fund's credit rating. At the company's current rating, the margin is 240 basis points over applicable Euribor or Libor.

ProLogis also has closed on a EUR75m, three-year, unsecured credit facility on behalf of ProLogis European Properties Fund II jointly arranged by Bank of America, ING Real Estate Finance and The Royal Bank of Scotland. The new facility has a EUR75m accordion increase feature, subject to obtaining additional lender commitments, and replaces the unsecured credit facility that matured on 30 July 2010. Pricing for the new facility will be 250 basis points over applicable Libor, but may be reduced to 225 basis points if the fund were to obtain a private investment grade rating.

"We are pleased to have closed on these credit facilities, which will provide additional liquidity to address working capital needs and pursue opportunistic investments within the funds," says William E. Sullivan, chief financial officer. "Both PEPR and PEPF II are well positioned with no debt maturities until 2012. In addition to providing flexibility, these new credit facilities are more appropriately sized for our current level of business activity and further allow for the potential to upsize the respective facilities at a later date."