By Devika Patel
Knoxville, Tenn., April 20 – SmartStop Self Storage REIT, Inc. arranged a private placement of $150 million of 4.53% 10-year senior notes on April 19, according to an 8-K filed with the Securities and Exchange Commission.
The deal will settle in two parts, with $75 million settled at pricing and the remaining $75 million settling May 25.
Interest on the notes is subject to a potential 75-basis-point increase if, as of March 31, 2023, the company’s ratio of total debt to EBITDA leverage ratio is greater than 7 to 1 on a consolidated basis. If this occurs, the interest rate would increase to 5.28% until the total debt to EBITDA leverage ratio is less than or equal to 7 to 1 on a consolidated basis for two consecutive fiscal quarters.
Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc. are the agents.
Proceeds will be used for general corporate purposes and debt repayment.
SmartStop is a REIT based in Ladera Ranch, Calif., that invests in self-storage facilities.
| Issuer: | SmartStop Self Storage REIT, Inc.
|
| Issue: | Senior notes
|
| Amount: | $150 million
|
| Maturity: | April 19, 2032
|
| Agents: | Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc.
|
| Coupon: | 4.53%, may increase to 5.28% based on company’s total debt to EBITDA leverage ratio
|
| Pricing date: | April 19
|
| Settlement date: | April 19 (for $75 million), May 25 (for $75 million)
|
| Distribution: | Private placement
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
