By Stephanie N. Rotondo
Phoenix, May 28 - Public Storage priced $250 million of 6% series Z cumulative preferred shares (expected ratings: A3/BBB+/A), according to an FWP filed with the Securities and Exchange Commission on Wednesday.
The preferreds came at the rich end of talk which had been set at 6% to 6.125%.
BofA Merrill Lynch, Morgan Stanley & Co LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunning managers.
The preferreds were sold as depositary shares representing a 1/1,000th interest.
Dividends will be payable quarterly beginning Sept. 30.
The preferreds will be callable beginning June 2019 at par plus accrued dividends.
The Glendale, Calif.-based real estate investment trust will use proceeds to make investments in self-storage facilities and in entities that own self-storage facilities, as well as for general corporate purposes.
| Issuer: | Public Storage
|
| Securities: | Series Z cumulative preferred shares of beneficial interest
|
| Amount: | $250 million, or 10 million shares
|
| Greenshoe: | $37.5 million, or 1.5 million shares
|
| Maturity: | Perpetual
|
| Dividend: | 6%
|
| Talk: | 6% to 6.125%
|
| Price: | Par of $25
|
| Yield: | 6%
|
| Call option: | June 4, 2019 onwards at par plus accrued dividends
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Pricing date: | May 28
|
| Settlement date: | June 4
|
| Expected ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A
|
| Expected listing: | NYSE: PSAPZ
|
| Cusip: | 74460W826
|
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