New York, Oct. 6 – Public Storage priced a $350 million offering of series E cumulative preferred shares (expected ratings: A3/BBB+) with a 4.9% dividend at par of $25.
The deal came in line with price talk of 4.9% and was massively upsized from the $100 million amount that had initially been expected in the market.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
There is an over-allotment option which could increase the size further. The size of the greenshoe was not immediately available.
Dividends will be payable quarterly beginning Dec. 31.
The preferreds are callable starting in October 2021 at par.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “PSAPE.”
The Glendale, Calif.-based real estate investment trust will use the proceeds to make investments in self-storage facilities and in entities that own such facilities, for the development of such facilities and for general corporate purposes.
| Issuer: | Public Storage
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| Issue: | Series E cumulative preferred shares
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| Amount: | $350 million
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| Greenshoe: | Yes
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| Maturity: | Perpetual
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| Dividend: | 4.9%
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| Price: | Par of $25.00
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| Yield: | 4.9%
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| Call: | Starting October 2021 at par
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| Expected listing: | New York Stock Exchange: PSAPrE
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| Pricing date: | Oct. 6
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| Settlement: | Oct. 14
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| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC
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