ProLogis European Properties announces the early repayment of €335.9 million of CMBS debt.
Luxembourg - 09 March 2009 - ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern warehouse distribution facilities, announced today that it will repay CMBS debt of €335.9 million on 5 April 2009, three months earlier than contractually required. PEPR will use a combination of cash from operations and available capacity under its €900 million unsecured credit facility to complete the repayment, which is subject to customary closing conditions.
Peter Cassells, chief executive officer of PEPR said: "We are pleased to be able to repay this CMBS debt early, demonstrating progress with our de-leveraging initiatives. The early repayment will save PEPR over €1 million in interest expense this year and crystallise approximately €43 million of cash flow following the unwinding of related derivatives, proceeds from which will be used to fund this repayment. It will also release some €550 million of secured properties, based on values at 31 December 2008, to our unsecured asset pool. We continue to make headway on our actions to strengthen the balance sheet and improve liquidity."
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