Public Storage begins tender offer for Shurgard Storage's 7.75%, 5.875% notes

By Angela McDaniels

Tacoma, Wash., Feb. 3 - Public Storage, Inc. has begun a fixed-price cash tender offer for the $200 million 7.75% notes due 2011 and $200 million 5.875% notes due 2013 of subsidiary Shurgard Storage Centers, LLC.

The notes were originally issued by Shurgard Storage Centers, Inc., which Public Storage acquired in 2006 and merged into Shurgard Storage Centers, LLC.

For each $1,000 principal amount, the company is offering par for the 7.75% notes and $925 for the 5.875% notes. Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be Feb. 12.

The offer will expire at 5 p.m. ET on Feb. 10, according to a company news release.

Public Storage said it expects to use available cash to pay for the notes.

The dealer managers are Goldman, Sachs & Co. (212 357-4692 or 800 828-3182) and J.P. Morgan Securities, Inc. (212 834-4388 or 866 834-4666). The information agent is Okapi Partners LLC (877 796-5274).

Public Storage is a real estate investment trust based in Glendale, Calif., that operates self-storage facilities.

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