Global logistics developer ProLogis has launched a tender offer to buy $500m (£334m) back of its loan notes at 70% of their nominal value.
The notes, which carry interest of 5.25%, were due to be repaid on November 15, 2010.
ProLogis said it would use ‘available cash’ and ‘borrowings under its $4.3bn (£2.86bn) lines of credit’ to fund the purchase of the notes, which would then be cancelled after purchase.
The offer, which has been managed by JP Morgan Securities, is scheduled to expire in one week, although ProLogis said it could be either extended further or terminated earlier.
Shares in ProLogis fell 24.5% yesterday, closing at $5.60, just hours before the company announced its offer. This gave it a market capitalisation of $1.49bn (£994m).
In November chairman and chief executive Jeff Schwartz resigned from ProLogis as the company put a halt to all new development and said it would slash staff numbers by 20-25%.