By Stephanie N. Rotondo
Seattle, Jan. 12 – Public Storage priced a $275 million offering of 5.4% series B cumulative perpetual preferred stock (expected ratings: A3/BBB+) on Tuesday, the company said in an FWP filed with the Securities and Exchange Commission.
The deal was originally slated to be $75 million.
The preferreds will be issued as depositary shares representing a 1/1,000th interest. Price talk was around 5.5%.
There is a $25 million over-allotment option.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and UBS Securities LLC are the joint bookrunning managers.
Dividends will be payable quarterly on the last day of March, June, September and December, beginning March 31. The preferreds become redeemable Jan. 20, 2021 at par plus accrued dividends.
Proceeds will be used to make investments in self-storage facilities and in entities that own self-storage facilities, for the development of storage facilities and for general corporate purposes.
Public Storage is a Glendale, Calif.-based real estate investment trust.
| Issuer: | Public Storage
|
| Securities: | Series B cumulative preferred stock
|
| Amount: | $275 million, or 11 million shares
|
| Greenshoe: | $25 million, or 1 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, UBS Securities LLC (2.64 million shares each)
|
| Co-manager: | Citigroup Global Markets Inc. (440,000 shares)
|
| Dividend: | 5.4%
|
| Price: | Par of $25.00
|
| Yield: | 5.4%
|
| Call options: | On or after Jan. 20, 2021 at par plus accrued dividends
|
| Pricing date: | Jan. 12
|
| Settlement date: | Jan. 20
|
| Expected ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Expected listing: | NYSE: PSAPB
|
| Cusip: | 74460W776
|
| Talk: | 5.5%
|
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