By Stephanie N. Rotondo
Portland, Ore., March 6 - Public Storage priced a $425 million offering of 5.75% cumulative preferreds shares of beneficial interest, series T, a trader reported Tuesday.
The deal was announced Monday. Pricing was in line with talk.
The shares will be issued as depositary shares representing 1/1,000th of an interest in the preferreds. The depositary shares sold for $25 each.
The underwriters have a 2.55 million-depositary share over-allotment option. The underwriters received a 78.75-cent discount for retail orders and a 50-cent discount for institutional orders, the company said in an FWP filing with the Securities and Exchange Commission.
Dividends will be paid quarterly beginning June 30.
The preferreds will not be redeemable until March 13, 2017.
There is no stated maturity nor any sinking fund or mandatory redemption clause.
The Glendale, Calif.-based real estate investment trust will apply to list the depositary shares on the New York Stock Exchange under the symbol "PSAPT."
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers.
Of the underwriting group, the bookrunners each subscribed for 3,718,750 depositary shares.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Janney Montgomery Scott LLC, Morgan Keegan & Co. Inc., Oppenheimer & Co. Inc., Pershing LLC, Raymond James & Associates, Inc., RBC Dain Rauscher Inc., Robert W. Baird & Co. Inc., Stifel, Nicolaus & Co., Inc. and Advisors Asset Management subscribed for 127,500 depositary shares each.
Subscribing for 42,500 depositary shares each were BB&T Capital Markets, B.C. Ziegler and Co., Boenning & Scattergood, Inc., C.L. King & Associates, Inc., City Securities Corp., D.A. Davidson & Co., Davenport & Co. LLC, HRC Investment Services, Inc., J.J.B. Hilliard, WL Lyons LLC, Keefe, Bruyette & Woods, Inc., KeyBanc Capital Markets Inc., Mesirow Financial, Inc., Sterne, Agee & Leach, Inc., Synovus Securities, Inc., Wedbush Securities Inc. and William Blair & Co., LLC.
Settlement is expected March 13.
Proceeds will be used to redeem all $476.63 million of the company's 6.625% series M cumulative preferred shares on April 1.
| Issuer: | Public Storage
|
| Securities: | Series T cumulative redeemable preferred stock
|
| Amount: | $425 million, or 17 million depositary shares
|
| Greenshoe: | $63.75 million, or 2.55 depositary shares
|
| Maturity: | Perpetual
|
| Dividend: | 5.75%, payable quarterly
|
| Price: | $25 per depositary share
|
| Call option: | Beginning March 13, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Pricing date: | March 6
|
| Settlement date: | March 13
|
| Expected listing: | NYSE: PSAPT
|
| CUSIP: | 74460W404
|
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