Extra Space Announces Pricing of $300 Million Add-On Offering of 5.700% Senior Notes due 2028
Extra Space Storage announced the pricing of a $300 million add-on offering of 5.700% senior notes due 2028. The notes will be combined with previously issued $500 million notes under the same terms. Priced at 102.857% of principal amount, the notes will mature on April 1, 2028. The offering, expected to close around December 5, 2024, involves multiple financial institutions as joint book-running managers and co-managers. The company plans to use the proceeds to repay credit line amounts and for general corporate purposes, including potential acquisitions.
Extra Space Storage ha annunciato la determinazione del prezzo di un offerta supplementare di 300 milioni di dollari di note senior al 5,700% con scadenza nel 2028. Le note saranno combinate con note precedentemente emesse da 500 milioni di dollari secondo gli stessi termini. Prezziate a 102,857% dell'importo principale, le note scadranno il 1 aprile 2028. L'offerta, prevista per chiudere intorno al 5 dicembre 2024, coinvolge diverse istituzioni finanziarie in qualità di gestori principali e co-gestori. L'azienda prevede di utilizzare i proventi per rimborsare gli importi delle linee di credito e per scopi aziendali generali, comprese potenziali acquisizioni.
Extra Space Storage anunció la fijación de precios de una oferta adicional de 300 millones de dólares de bonos senior al 5,700% con vencimiento en 2028. Los bonos se combinarán con bonos previamente emitidos por 500 millones de dólares bajo los mismos términos. Con un precio de 102.857% del monto principal, los bonos vencerán el 1 de abril de 2028. Se espera que la oferta se cierre alrededor del 5 de diciembre de 2024 e involucra a múltiples instituciones financieras como gestores principales y co-gestores. La compañía planea utilizar los ingresos para pagar importes de líneas de crédito y para fines corporativos generales, incluidas posibles adquisiciones.
엑스트라 스페이스 스토리지는 3억 달러 추가 제안의 5.700% 만기 2028년의 시니어 노트 가격을 발표했습니다. 이 노트는 동일한 조건에 따라 이전에 발행된 5억 달러 노트와 결합될 것입니다. 원금의 102.857%에 가격이 책정되었으며, 노트는 2028년 4월 1일 만료됩니다. 이 제안은 2024년 12월 5일 경에 마감될 것으로 예상되며, 여러 금융 기관이 공동 주관사 및 공동 관리자로 참여합니다. 회사는 수익금을 신용라인 상환 및 일반 기업 용도로, 잠재적 인수 포함에 사용하려고 합니다.
Extra Space Storage a annoncé le prix d'une offre supplémentaire de 300 millions de dollars de titres senior à 5,700% échéant en 2028. Les titres seront combinés avec des titres précédemment émis à hauteur de 500 millions de dollars selon les mêmes conditions. Évalués à 102,857% du montant principal, les titres arriveront à échéance le 1er avril 2028. L'offre, qui devrait se clôturer aux alentours du 5 décembre 2024, implique plusieurs institutions financières en tant que co-organisateurs principaux et co-gestionnaires. L'entreprise prévoit d'utiliser les produits pour rembourser les montants des lignes de crédit et pour des fins corporatives générales, y compris des acquisitions potentielles.
Extra Space Storage hat die Preisfestsetzung für ein 300 Millionen Dollar Zubot angebot von 5,700% Senior Notes mit Fälligkeit 2028 bekannt gegeben. Die Anleihen werden mit zuvor ausgegebenen Anleihen über 500 Millionen Dollar zu denselben Bedingungen kombiniert. Sie wurden zu 102,857% des Nennbetrags bepreist und fallen am 1. April 2028 zur Fälligkeit. Es wird erwartet, dass das Angebot um den 5. Dezember 2024 geschlossen wird und mehrere Finanzinstitute als Haupt- und Co-Manager beteiligt sind. Das Unternehmen plant, die Einnahmen zur Rückzahlung von Kreditlinien und für allgemeine Unternehmenszwecke, einschließlich möglicher Akquisitionen, zu verwenden.
- Additional $300 million in capital raised through senior notes offering
- Strong institutional backing with multiple major financial institutions participating
- Proceeds will provide flexibility for potential acquisitions and debt management
- Increased debt obligation with 5.700% interest rate
- Premium pricing at 102.857% of principal amount increases effective cost of capital
Insights
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The debt refinancing strategy to pay down revolving credit facilities provides greater financial flexibility and potentially reduces interest expense, given that variable rate credit lines may carry higher costs in the current rate environment. The strong syndicate of investment banks underwriting the offering indicates broad institutional support. The premium pricing should result in an effective yield below the stated coupon rate for new investors, while maintaining consistency with the outstanding
The operating partnership intends to use the net proceeds from this offering to repay amounts outstanding from time to time under its lines of credit, and for other general corporate and working capital purposes, including funding potential acquisition opportunities.
The Notes will be issued pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. The offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which, when available, may be obtained from J.P. Morgan Securities LLC, 383 Madison Avenue,
A prospectus supplement related to the offering will also be available free of charge on the SEC's website at http://www.sec.gov.
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in
Forward-Looking Statements:
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the terms, timing and completion of the offering of securities by Extra Space and the operating partnership, including the anticipated use of proceeds therefrom. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Such risks and uncertainties include without limitation those associated with market risks and uncertainties and the satisfaction of customary closing conditions for an offering of securities, as well as the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. All forward-looking statements apply only as of the date of this release. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
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SOURCE Extra Space Storage Inc.
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