Public Storage Prices Public Offering of Senior Notes to Fund Simply Self Storage Transaction
July 24 2023 - 11:25PM
Business Wire
Public Storage (NYSE:PSA, the “Company”) announced today that
the Company has priced a public offering of $2.2 billion aggregate
principal amount of senior notes (the “Notes”) primarily to fund
the recently announced Simply Self Storage acquisition. The
multi-tranche offering includes the Company’s inaugural 30-year
senior note offering.
The Notes will be issued in four tranches with an initial
weighted average interest rate of approximately 5.3%. The first
tranche of $400 million aggregate principal amount of floating rate
senior notes due 2025 will bear interest at a rate equal to
Compounded SOFR (as defined in the prospectus supplement relating
to the offering), reset quarterly, plus 60 basis points, will be
issued at 100.000% of par value and will mature on July 25, 2025
(the “floating rate notes”). We will pay interest on the floating
rate notes quarterly on January 25, April 25, July 25 and October
25 of each year, commencing October 25, 2023. The second tranche of
$500 million aggregate principal amount of fixed rate senior notes
due 2029 will bear interest at an annual rate of 5.125%, will be
issued at 99.917% of par value and will mature on January 15, 2029
(the “2029 notes”). We will pay interest on the 2029 notes
semi-annually on January 15 and July 15 of each year, commencing
January 15, 2024. The third tranche of $700 million aggregate
principal amount of fixed rate senior notes due 2033 will bear
interest at an annual rate of 5.100%, will be issued at 99.828% of
par value and will mature on August 1, 2033 (the “2033 notes”). The
fourth tranche of $600 million aggregate principal amount of fixed
rate senior notes due 2053 will bear interest at an annual rate of
5.350%, will be issued at 99.732% of par value and will mature on
August 1, 2053 (the “2053 notes”). We will pay interest on the 2033
notes and the 2053 notes semi-annually on February 1 and August 1
of each year, commencing February 1, 2024.
The offering is expected to close on July 26, 2023, subject to
the satisfaction of customary closing conditions. The Company
expects to use the net proceeds to fund the $2.2 billion purchase
price for the acquisition of Simply Self Storage and related
transaction costs, and to use any remaining net proceeds for
general corporate purposes, including other acquisitions of
self-storage facilities and repayment of debt. No assurances are
given as to the closing of the Simply Self Storage acquisition, and
the closing of the offering is not conditioned on the closing of
the Simply Self Storage acquisition.
BofA Securities, Inc. and J.P. Morgan Securities LLC, acted as
joint book-running managers of the offering. This announcement
shall not constitute an offer to sell or a solicitation of an offer
to buy these securities nor shall there be any offer or sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful. The offering is
being made pursuant to an effective shelf registration statement
filed with the Securities and Exchange Commission (the “SEC”) and
only by means of a prospectus and prospectus supplement. Investors
may obtain these documents for free by visiting EDGAR on the SEC’s
website at www.sec.gov. Alternatively, copies of the prospectus and
prospectus supplement may be obtained by contacting BofA
Securities, Inc., 201 North Tryon Street NC1-022-02-25, Charlotte,
NC, 28255-0001, Attn: Prospectus Department; Toll-free:
1-800-294-1322; E-mail: dg.prospectus_requests@bofa.com and J.P.
Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179,
Attention: Investment Grade Syndicate Desk, telephone:
1-212-834-4533.
Company Information
Public Storage, a member of the S&P 500 and FT Global 500,
is a REIT that primarily acquires, develops, owns and operates
self-storage facilities. At March 31, 2023, we had: (i) interests
in 2,877 self-storage facilities located in 40 states with
approximately 204.9 million net rentable square feet in the United
States and (ii) an approximate 35% common equity interest in
Shurgard Self Storage Limited (Euronext Brussels:SHUR) which owned
266 self-storage facilities located in seven Western European
nations with approximately 15 million net rentable square feet
operated under the “Shurgard” brand. Our headquarters are located
in Glendale, California.
Forward-Looking
Statements
When used within this press release, the words “expects,”
“believes,” “anticipates,” “plans,” “would,” “should,” “may,”
“estimates” and similar expressions are intended to identify
“forward-looking statements,” including but not limited to,
statements about the completion and timing of the proposed offering
of securities by the Company and the intended use of net proceeds
of such offering to fund the Simply Self Storage acquisition. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause our actual results
to be materially different from those expressed or implied in the
forward-looking statements. Such factors include market conditions
and the demand for the Company’s securities and risks detailed in
the Company’s prospectus and prospectus supplement filed with the
SEC in connection with this offering and in the Company’s SEC
reports, including quarterly reports on Form 10-Q, current reports
on Form 8-K and annual reports on Form 10-K. We undertake no
obligation to publicly update or revise forward-looking statements
which may be made to reflect events or circumstances after the date
of this release or to reflect the occurrence of unanticipated
events, except as required by law.
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Ryan Burke (818) 244-8080, Ext. 1141
Public Storage (NYSE:PSA)
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