By Angela McDaniels
Tacoma, Wash., Aug. 1 – National Storage Affiliates Trust operating partnership NSA OP, LP agreed to issue $100 million of 3.98% senior notes due Aug. 30, 2029 and $50 million of 4.08% senior notes due Aug. 30, 2031 in a private placement, according to an 8-K filing made with the Securities and Exchange Commission.
The issuer entered into the note purchase agreement on Tuesday. The sale and purchase of the notes is expected to occur on Aug. 30.
The issuer must comply with the following financial covenants under the note purchase agreement:
• A maximum total leverage ratio of 60%; provided, however, the operating partnership will be permitted to maintain a ratio of up to 65% following a material acquisition and for two consecutive quarters onwards;
• A minimum fixed charge coverage ratio of at least 1.5 times;
• A maximum unsecured debt to unencumbered asset value ratio of 60%; provided, however, the operating partnership will be permitted to maintain a ratio of up to 65% following a material acquisition and for two consecutive quarters onwards; and
• Unencumbered adjusted net operating income to unsecured interest expense of at least 2 times.
National Storage Affiliates Trust is a real estate investment trust based in Greenwood Village, Colo.
| Issuer: | NSA OP, LP
|
| Issue: | Senior notes
|
| Amount: | $150 million
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 30
|
|
|
| 10-year notes
|
| Amount: | $100 million
|
| Maturity: | Aug. 30, 2029
|
| Coupon: | 3.98%
|
|
|
| 12-year notes
|
| Amount: | $50 million
|
| Maturity: | Aug. 30, 2031
|
| Coupon: | 4.08%
|
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