By Stephanie N. Rotondo
Seattle, July 31 – Public Storage priced an upsized $300 million of 5.05% series G cumulative preferred stock (expected ratings: A3/BBB+) on Monday, the company said in an FWP filed with the Securities and Exchange Commission.
The deal came in line with revised price talk. Initial price talk was 5.125%.
The size of the issue was also increased from $100 million.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
There is a $45 million over-allotment option.
The preferreds will be issued as depositary shares representing a 1/1,000 interest.
Dividends will be payable on the last day of March, June, September and December, beginning Sept. 30. The issue becomes redeemable on Aug. 9, 2022 at par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “PSAPrG.”
The Glendale, Calif.-based real estate investment trust will use the proceeds to make investments in self-storage facilities and in entities that own self-storage facilities, for the development of self-storage facilities and for general corporate purposes.
| Issuer: | Public Storage
|
| Securities: | Series G cumulative preferred stock
|
| Amount: | $300 million, or 12 million shares
|
| Greenshoe: | $45 million, or 1.8 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC (for 2.88 million shares apiece)
|
| Co-manager: | Citigroup Global Markets Inc. (for 480,000 shares)
|
| Dividend: | 5.05%
|
| Price: | Par of $25.00
|
| Yield: | 5.05%
|
| Talk: | Initially 5.125%, then revised to 5.05%
|
| Call options: | On or after Aug. 9, 2022 at par plus accrued dividends
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 9
|
| Expected ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Expected listing: | NYSE: PSAPrG
|
| Cusip: | 74460W669
|
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