ProLogis, a Denver-based provider of distribution facilities and services and fund manager, has closed a USD104.7m secured financing facility with a large institutional investor on behalf of an affiliate of ProLogis North American Industrial Fund II.

The 10-year financing has a coupon of 6.38 per cent and represents a loan-to-value of approximately 58 per cent on five geographically diverse US industrial properties. The proceeds will be used to refinance a USD62m secured debt facility that was set to mature in January 2009 and pay down USD42m of a Citi bridge debt facility, reducing 2009 maturities in the fund by approximately USD104m.

The company outlined an action plan for investors on November 13 that includes refinancing or renegotiating debt maturities on ProLogis's balance sheet and in its property funds, halting new development starts, shrinking the development pipeline, deleveraging the balance sheet and retaining capital through cuts in general and administrative expenses, and a reduction of the dividend. 'We will continue to report our progress as we execute on our plan,' says ProLogis chief financial officer Bill Sullivan,.

ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 136 markets in North America, Europe and Asia. The company had USD40.8bn in assets owned, managed and under development, comprising 51 million square metres in 2,898 properties at the end of September 30. ProLogis's customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs.