By Wendy Van Sickle
Columbus, Ohio, Nov. 4 – Public Storage priced $1.75 billion of fixed-rate senior notes in three parts, according to a news release on Thursday and an FWP filed with the Securities and Exchange Commission.
Public Storage priced $650 million of 1.5% senior notes due Nov. 9, 2026 at 99.847 to yield 1.532%, or with a spread of Treasuries plus 43 basis points.
It priced $550 million of 1.95% senior notes due Nov. 9, 2028 at 99.954 to yield 1.957%, or at a spread of Treasuries plus 58 bps.
Finally, the company priced $550 million of 2.25% senior notes due Nov. 9, 2031 at 99.973 to yield 2.253%, or with a spread of 73 bps over Treasuries.
All three series will have optional make-whole calls that convert to par calls a number of months before their respective maturity dates.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the bookrunners.
BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC were also listed as bookrunners.
Proceeds will be used to the fund the $1.5 billion purchase price for the pending All Storage acquisition.
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: | $1.75 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and UBS Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp. and Scotia Capital (USA) Inc.
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Skadden, Arps, Slate, Meagher & Flom LLP
|
| Trustee: | Computershare Trust Co., NA
|
| Call: | Option make-whole calls that convert to par calls set number of months before maturity
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 9
|
|
|
| 2026 notes
|
| Amount: | $650 million
|
| Maturity: | Nov. 9, 2026
|
| Coupon: | 1.5%
|
| Price: | 99.847
|
| Yield: | 1.532%
|
| Spread: | Treasuries plus 43 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Oct. 9, 2026; thereafter at par
|
| Cusip: | 74460DAG4
|
|
|
| 2028 notes
|
| Amount: | $550 million
|
| Maturity: | Nov. 9, 2028
|
| Coupon: | 1.95%
|
| Price: | 99.954
|
| Yield: | 1.957%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Sept. 9, 2028; thereafter at par
|
| Cusip: | 74460DAH2
|
|
|
| 2031 notes
|
| Amount: | $550 million
|
| Maturity: | Nov. 9, 2031
|
| Coupon: | 2.25%
|
| Price: | 99.973
|
| Yield: | 2.253%
|
| Spread: | Treasuries plus 73 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Aug. 9, 2031; thereafter at par
|
| Cusip: | 74460DAJ8
|
|
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