Public Storage greenshoe lifts 6.35% preferreds to $487.5 million

By Susanna Moon

Chicago, Aug. 5 - Public Storage underwriters partially exercised their over-allotment option for additional depositary shares representing 1/1,000 of a 6.35% cumulative preferred share of beneficial interest, series R.

The $62.5 million greenshoe exercise brought the total deal size to $487.5 million.

In total, the company issued 19.5 million depositary shares at $25 each.

Public Storage priced $425 million of depositary shares on July 19 with Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC as bookrunners. J.P. Morgan Securities LLC and RBC Capital Markets LLC are the co-managers.

Public Storage granted the underwriters an option for up to $63.75 million, or 2.55 million, more shares to cover over-allotments.

The depositary shares will be callable at $25 after five years, and the company will apply to list them on the New York Stock Exchange under the symbol "PSAPrR," according to a previous 424B5 filing with the Securities and Exchange Commission.

The proceeds are expected to be used to redeem the company's 7.25% cumulative preferred shares, series K, on Aug. 22.

Public Storage is a Glendale, Calif.-based real estate investment trust focused on self-storage facilities.

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