By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 4 – Public Storage priced an upsized $250 million offering of 4.1% cumulative preferred shares, series S, at par of $25.00 on Tuesday, according to an FWP with the Securities and Exchange Commission.
There is a $37.5 million greenshoe.
The preferreds were talked to yield in the area of 4.125% and with an issue size of $100 million, according to a market source.
BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners for the securities, which have no stated maturity date.
Dividends are payable on March 31, June 30, Sept. 30 and Dec. 31, starting on March 31, 2022.
The preferreds will be redeemable beginning in 2027.
Proceeds will be used to make investments in self-storage facilities, including development, interests in partnerships and other entities and mortgage loans, and for general corporate purposes, including repayment of debt and the redemption of outstanding securities. Pending application, the issuer may invest the net proceeds in short-term, interest-bearing securities.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “PSAPrS.”
Public Storage is a Glendale, Calif.-based storage-focused real estate investment trust.
| Issuer: | Public Storage
|
| Amount: | $250 million, or 10 million shares
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| Greenshoe: | $37.5 million, 1.5 million shares
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| Issue: | Cumulative preferred shares, series S
|
| Maturity: | Perpetual
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| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
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| Dividend: | 4.1%
|
| Price: | Par of $25.00
|
| Yield: | 4.1%
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| Call option: | Starting Jan. 13, 2027
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| Pricing date: | Jan. 4
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| Settlement date: | Jan. 13
|
| Distribution: | SEC registered
|
| Talk: | 4.125% area
|
| Symbol: | NYSE: PSAPrS
|
| Cusip: | 74460W396
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