AURORA, CO-ProLogis, the world's largest industrial real estate investment trust, borrowed $1.5 billion from Bank of America NA and other lenders, according to a portion of a 162-page 8K filed with the Securities and Exchange Commission. The loan agreement was consummated on the same day ProLogis merged with San Francisco-based Catellus in a $5.5-billion cash, stock and debt assumption deal.

ProLogis borrowed the entire $1.5 billion available under the bridge facility. The loans under the facility mature on Sept. 14, 2006. Based on ProLogis' current public debt ratings, interest on the loans under the bridge facility accrue at a rate per annum equal to the London Interbank Offered Rate (Libor) plus a margin of 0.475%. A facility fee is also payable on the total commitment under the bridge facility. The interest rate margins and facility fee are based on the public debt ratings of ProLogis.

Some of the lenders under the bridge facility and affiliates of the lenders, provide financial advisory, banking and related services to ProLogis or its subsidiaries from time to time and receive customary fees for such services, the documents note. Banc of America Securities LLC was ProLogis' financial advisor in connection with the merger and received or will receive customary fees for such services, ProLogis said in the SEC document. Other lenders listed in the document were JP Morgan Chase Bank and Citicorp North America.

The merger agreement provides that each Catellus stockholder will receive either 0.822 of a ProLogis common share or $33.81 in cash, without interest, for each share of Catellus common stock. In addition, holders of cancelled Catellus stock options received $33.81 for each share of Catellus stock subject to the cancelled option, less the exercise price and any applicable withholding taxes, which was paid in the form of 65% ProLogis common shares and 35% cash. Holders of cancelled Catellus restricted stock or restricted stock received $33.81 for each share of restricted stock subject to the restricted stock unit, less any applicable withholding taxes, which was paid in the form of 65% ProLogis common shares and 35% cash.