By James McCandless
San Antonio, Dec. 11 – Public Storage priced a $200 million offering of $25-par series K cumulative preferred shares at par with a dividend of 4.75%, according to an FWP filing with the Securities and Exchange Commission.
There is a $30 million greenshoe.
BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Dividends are payable on March 31, June 30, Sept. 30 and Dec. 31 of each year, beginning on March 31, 2020.
The preferreds are redeemable on or after Dec. 20, 2024 at par. Prior to that, the preferreds are redeemable if the company needs to preserve its status as a real estate investment trust.
Public Storage plans to 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, including the redemption of its 5.875% series A cumulative preferred shares.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “PSAPrK.”
Public Storage is a Glendale, Calif.-based real estate investment trust.
| Issuer: | Public Storage
|
| Description: | Series K cumulative preferred shares
|
| Amount: | $200 million, or 8 million shares
|
| Greenshoe: | $30 million, or 1.2 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC
|
| Dividend: | 4.75%
|
| Price: | Par of $25.00
|
| Yield: | 4.75%
|
| Call: | On or after Dec. 20, 2024 at par; prior to that, in order to preserve the company’ status as a REIT
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 20
|
| Distribution: | SEC registered
|
| Listing: | NYSE: PSAPrK
|
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