By Stephanie N. Rotondo
Phoenix, June 6 - Public Storage issued $250 million of 5.625% series U cumulative perpetual preferred stock, a trader reported Wednesday.
The deal came at the low end of price talk that had been set at 5.625% to 5.75%.
The preferreds will be issued as depositary shares representing a 1/1,000th of an interest.
There is a $37.5 million overallotment option. The shares were sold at par of $25 each to the public, with underwriters receiving a 78.75 cent discount.
Dividends will be paid quarterly, beginning Sept. 30. The Glendale, Calif.-based real estate investment trust cannot redeem the preferreds before June 15, 2017, except in order to preserve its REIT status.
Public Storage will apply to list the new preferreds on the New York Stock Exchange under the symbol "PSAPU." Settlement is expected June 15.
Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers.
Wells Fargo is the lead on the deal.
J.P. Morgan Securities LLC and RBC Capital Markets are the co-managers. Also in the syndicate were BNY Mellon Capital markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, Oppenheimer & Co. Inc., Raymond James & Associates Inc., Robert W. Baird & Co. Inc., Wedbush Securities Inc., BB&T Capital Markets, B.C. Ziegler & Co., C.L. King & Associates Inc., 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., Sterne, Agee & Leach Inc., Stifel Nicolaus & Co. Inc. and William Blair & Co. LLC.
Proceeds from the sale will be used to redeem $172.5 million of 7% series N cumulative preferred shares. Any remaining funds will be used for general corporate purposes, which may include investments in self-storage facilities and other possible redemptions.
| Issuer: | Public Storage
|
| Securities: | Series U cumulative preferred stock
|
| Amount: | $250 million, or 10 million shares
|
| Greenshoe: | $37.5 million
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| Dividend: | 5.625%
|
| Maturity: | Perpetual
|
| Redemptions: | On or after June 15, 2017
|
| Lead bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. Inc. and UBS Securities LLC
|
| Co-managers: | J.P. Morgan Securities LLC RBC Capital Markets, BNY Mellon Capital markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, Oppenheimer & Co. Inc., Raymond James & Associates Inc., Robert W. Baird & Co. Inc., Wedbush Securities Inc., BB&T Capital Markets, B.C. Ziegler & Co., C.L. King & Associates Inc., 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., Sterne, Agee & Leach Inc., Stifel Nicolaus & Co. Inc. and William Blair & Co. LLC
|
| Pricing: | June 6
|
| Settlement: | June 15
|
| Stock symbol: | NYSE: PSAPU
|
| Cusip: | 74460W602
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