By Stephanie N. Rotondo
Phoenix, Nov. 20 – Public Storage priced $175 million of 5.875% series A cumulative perpetual preferred stock on Thursday, the company said in an FWP filed with the Securities and Exchange Commission.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and UBS Securities LLC are underwriting the deal, each for 1.75 million shares apiece.
Dividends will be payable on a quarterly basis, commencing March 31.
The preferreds become redeemable on or after Dec. 2, 2019 at par plus accrued dividends.
The Glendale, Calif.-based real estate investment trust intends to use the proceeds to make investments in self-storage facilities and in entities that own self-storage facilities, for the development of self-storage facilities and for general corporate purposes.
| Issuer: | Public Storage
|
| Securities: | Series A cumulative preferred stock
|
| Amount: | $175 million, or 7 million shares
|
| Greenshoe: | $25 million, or 1 million shares
|
| Maturity: | Perpetual
|
| Underwriters: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, UBS Securities LLC
|
| Dividend: | 5.875%
|
| Price: | Par of $25.00
|
| Yield: | 5.875%
|
| Talk: | 5.875% to 6%
|
| Call option: | On or after Dec. 2, 2019 at par plus accrued dividends
|
| Pricing date: | Nov. 20
|
| Settlement date: | Dec. 2
|
| Expected listing: | NYSE: PSAPA
|
| Cusip: | 74460W792
|
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