By Stephanie N. Rotondo
Phoenix, March 10 - Public Storage priced $225 million of 6.375% series Y cumulative perpetual preferred shares (expected ratings: A3/BBB+), according to a market source on Monday.
The preferreds will be issued as depositary shares representing a 1/1000th interest.
Dividends will be paid quarterly. The company can redeem the preferreds on March 17, 2019 at par plus accrued dividends.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
The Glendale, Calif.-based real estate investment trust intends to use the proceeds to repay a portion of the company's term loan with Wells Fargo NA.
| Issuer: | Public Storage
|
| Securities: | Series Y cumulative preferred stock
|
| Amount: | $225 million or 9 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Dividend: | 6.375%
|
| Price: | Par of $25.00
|
| Yield: | 6.375%
|
| Talk: | Initially around 6.5%, then revised to 6.375%
|
| Call option: | On or after March 17, 2019 at par plus accrued dividends
|
| Pricing date: | March 10
|
| Settlement date: | March 17
|
| Expected ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Expected listing: | NYSE: PSAPY
|
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