By Marisa Wong
Los Angeles, April 14 – Public Storage priced $2 billion of senior notes in three tranches, according to an FWP filed Wednesday with the Securities and Exchange Commission.
Public Storage priced $700 million of floating-rate notes due 2024 at par to yield SOFR plus 47 basis points; $650 million of 1.85% notes due 2028 at 99.928 to yield 1.861%, or a spread of 55 bps over Treasuries; and $650 million of 2.3% notes due 2031 at 99.653 to yield 2.339%, or a spread of 70 bps over Treasuries.
According to a 424B5 filed earlier in the day, Public Storage had planned to issue four tranches of notes: one floating-rate tranche due 2024 and three fixed-rate tranches due 2024, 2028 and 2031.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used to acquire 48 self-storage facilities currently owned and operated by ezStorage Corp. for an acquisition price of $1.8 billion and for general corporate purposes, as previously reported.
Public Storage is a Glendale, Calif., real estate investment trust that acquires, develops, owns and operates self-storage facilities.
| Issuer: | Public Storage
|
| Description: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Scotia Capital (USA) Inc.
|
| Pricing date: | April 14
|
| Settlement date: | April 23
|
|
|
| 2024 notes
|
| Amount: | $700 million
|
| Maturity: | April 23, 2024
|
| Coupon: | SOFR plus 47 bps
|
| Price: | Par
|
| Yield: | SOFR plus 47 bps
|
| Call option: | At par on or after April 23, 2022
|
|
|
| 2028 notes
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| Amount: | $650 million
|
| Maturity: | May 1, 2028
|
| Coupon: | 1.85%
|
| Price: | 99.928
|
| Yield: | 1.861%
|
| Spread: | Treasuries plus 55 bps
|
| Call option: | Make-whole call prior to March 1, 2028 at Treasuries plus 10 bps; par call after that
|
|
|
| 2031 notes
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| Amount: | $650 million
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| Maturity: | May 1, 2031
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| Coupon: | 2.3%
|
| Price: | 99.653
|
| Yield: | 2.339%
|
| Spread: | Treasuries plus 55 bps
|
| Call option: | Make-whole call prior to Feb. 1, 2031 at Treasuries plus 12.5 bps; par call after that
|
|
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