By Cristal Cody
Tupelo, Miss., March 30 – CubeSmart, LP (Baa2/BBB) sold $100 million in reopenings of its 4.375% senior notes due Dec. 15, 2023 and 4% senior notes due Nov. 15, 2025 on Thursday, according to an FWP filing with the Securities and Exchange Commission.
CubeSmart priced $50 million in a tap of its 4.375% notes due 2023 at 105.04 to yield 3.495%, or Treasuries plus 155 basis points.
The company originally sold $250 million of 4.375% notes on Dec. 10, 2013 at 98.995 to yield 4.501% and a spread of 170 bps over Treasuries.
The $50 million add-on to the 4% notes due 2025 priced at 101.343 to yield 3.811%, or Treasuries plus 140 bps.
The company originally sold $250 million of 4% notes on Oct. 19, 2015 at 99.735 to yield 4.032%, or a spread of 200 bps over Treasuries.
Wells Fargo Securities LLC, BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the bookrunners.
The notes are guaranteed by CubeSmart.
Proceeds will be used to repay all of the debt incurred under the revolving portion of the company’s credit facility, for working capital and for other general corporate purposes, which may include other debt repayments or repurchases.
The real estate investment trust of self-storage facilities is based in Wayne, Pa.
| Issuer: | CubeSmart, LP
|
| Guarantor: | CubeSmart
|
| Amount: | $100 million reopenings
|
| Description: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch and U.S. Bancorp Investments Inc.
|
| Co-managers: | Barclays, BMO Capital Markets Corp., PNC Capital Markets LLC, Regions Securities LLC and Stifel, Nicolaus & Co., Inc.
|
| Trade date: | March 30
|
| Settlement date: | April 4
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2023
|
| Amount: | $50 million
|
| Maturity: | Dec. 15, 2023
|
| Coupon: | 4.375%
|
| Price: | 105.04
|
| Yield: | 3.495%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call before Sept. 15, 2023 at greater of par and Treasuries plus 30 bps; thereafter at par
|
| Total outstanding: | $300 million, including $250 million priced on Dec. 10, 2013 at 170 bps over Treasuries
|
|
|
| Notes due 2025
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| Amount: | $50 million
|
| Maturity: | Nov. 15, 2025
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| Coupon: | 4%
|
| Price: | 101.343
|
| Yield: | 3.811%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before Aug. 15, 2025 at greater of par and Treasuries plus 30 bps; thereafter at par
|
| Total outstanding: | $300 million, including $250 million priced on Oct. 19, 2015 at 200 bps over Treasuries
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