$900M Note Offering Priced at 4.855% to Fund NSA Acquisition
PSA sits 24% above its 52-week low of $256.54.
Summary
Public Storage priced a $900 million senior notes offering with a blended effective rate of 4.855%, split into $400M due 2032 at 4.700% and $500M due 2036 at 5.150%. Proceeds are earmarked to partially fund the pending acquisition of National Storage Affiliates Trust, with a special redemption at 101% if the deal falls through. This follows the preliminary prospectus supplement filed earlier today and the $3.5B credit facility secured in June, showing the company is lining up financing for the NSA deal. The offering is not contingent on the acquisition closing, but the redemption feature protects investors if the deal fails. The notes are expected to close July 20, with the NSA acquisition likely soon after.
At the time of this announcement, PSA was trading at $319.35 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $56.1B. The 52-week trading range was $256.54 to $331.79. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.