Extra Space Announces Pricing of $350 Million Add-On Offering of 5.500% Senior Notes due 2030
Extra Space Storage (NYSE: EXR) has announced the pricing of an additional $350 million of 5.500% senior notes due 2030. These notes will be combined with previously issued $450 million notes under the same terms. The notes were priced at 101.509% of principal value and will mature on July 1, 2030.
The offering, expected to close around January 22, 2025, is being managed by multiple financial institutions including Wells Fargo Securities, PNC Capital Markets , and US Bancorp as joint book-running managers. The notes will be guaranteed by Extra Space and certain subsidiaries.
The company plans to use the net proceeds to repay outstanding amounts on its lines of credit and commercial paper program, as well as for general corporate purposes and potential acquisitions.
Extra Space Storage (NYSE: EXR) ha annunciato la quotazione di un ulteriore $350 milioni di obbligazioni senior al 5.500% con scadenza nel 2030. Queste obbligazioni saranno unite a quelle precedentemente emesse per un valore di $450 milioni, secondo gli stessi termini. Le obbligazioni sono state quotate al 101.509% del valore nominale e scadranno il 1 luglio 2030.
L'offerta, che dovrebbe concludersi intorno al 22 gennaio 2025, è gestita da più istituzioni finanziarie, tra cui Wells Fargo Securities, PNC Capital Markets e US Bancorp in qualità di joint book-running managers. Le obbligazioni saranno garantite da Extra Space e da alcune sue sussidiarie.
La società intende utilizzare i proventi netti per ripagare gli importi dovuti sulle sue linee di credito e sul programma di commercial paper, oltre che per scopi aziendali generali e potenziali acquisizioni.
Extra Space Storage (NYSE: EXR) ha anunciado el precio de 350 millones de dólares adicionales en notas senior a un 5.500% con vencimiento en 2030. Estas notas se combinarán con las notas emitidas anteriormente por un total de 450 millones de dólares bajo los mismos términos. Las notas se fijaron en el 101.509% del valor nominal y vencerán el 1 de julio de 2030.
La oferta, que se espera cierre alrededor del 22 de enero de 2025, está siendo gestionada por múltiples instituciones financieras, incluyendo Wells Fargo Securities, PNC Capital Markets y US Bancorp como gerentes conjuntos de libros. Las notas estarán garantizadas por Extra Space y algunas de sus subsidiarias.
La compañía planea utilizar los ingresos netos para pagar los montos pendientes de sus líneas de crédito y el programa de papel comercial, así como para fines corporativos generales y posibles adquisiciones.
Extra Space Storage (NYSE: EXR)는 2030년 만기 예정인 5.500%의 추가 3억 5천만 달러 규모의 선순위 채권 발행 가격을 발표했습니다. 이 채권은 동일한 조건으로 이전에 발행된 4억 5천만 달러의 채권과 결합될 것입니다. 채권은 원금의 101.509%에 가격이 책정되었으며, 2030년 7월 1일에 만기가 됩니다.
2025년 1월 22일경에 마감할 것으로 예상되는 이번 공모는 Wells Fargo Securities, PNC Capital Markets 및 US Bancorp를 포함한 여러 금융기관이 공동 주관사로 관리합니다. 이 채권은 Extra Space와 일부 자회사가 보증합니다.
회사는 순수익을 사용하여 신용 한도 및 상업어음 프로그램의 미 결제 금액을 상환하고, 일반 기업 용도 및 잠재적 인수에 사용할 계획입니다.
Extra Space Storage (NYSE: EXR) a annoncé le prix d'une nouvelle émission de 350 millions de dollars d'obligations senior à 5.500% arrivant à échéance en 2030. Ces obligations seront combinées avec les obligations précédemment émises pour un montant de 450 millions de dollars selon les mêmes conditions. Les obligations ont été fixées à 101,509% de la valeur nominale et arriveront à échéance le 1er juillet 2030.
L'offre, qui devrait se clôturer aux alentours du 22 janvier 2025, est gérée par plusieurs institutions financières, y compris Wells Fargo Securities, PNC Capital Markets et US Bancorp en tant que co-gestionnaires. Les obligations seront garanties par Extra Space et certaines de ses filiales.
La société prévoit d'utiliser le produit net pour rembourser les montants dus sur ses lignes de crédit et son programme de papier commercial, ainsi que pour des usages généraux d'entreprise et des acquisitions potentielles.
Extra Space Storage (NYSE: EXR) hat die Preisgestaltung von zusätzlichen 350 Millionen US-Dollar an 5.500% Senior Notes mit Fälligkeit 2030 bekannt gegeben. Diese Notes werden mit zuvor ausgegebenen Notes im Wert von 450 Millionen US-Dollar unter denselben Bedingungen kombiniert. Die Notes wurden zu 101,509% des Nennwerts bepreist und fällig am 1. Juli 2030.
Das Angebot, das voraussichtlich rund um den 22. Januar 2025 geschlossen werden soll, wird von mehreren Finanzinstituten verwaltet, darunter Wells Fargo Securities, PNC Capital Markets und US Bancorp als gemeinsame Buchführer. Die Notes werden von Extra Space und bestimmten Tochtergesellschaften garantiert.
Das Unternehmen plant, die Nettomittel zu verwenden, um ausstehende Beträge auf seinen Kreditlinien und im kommerziellen Papierprogramm zurückzuzahlen, sowie für allgemeine Unternehmenszwecke und potenzielle Akquisitionen.
- Successful pricing of $350M additional senior notes indicates strong market confidence
- Combined $800M total notes offering strengthens company's capital structure
- Multiple tier-1 financial institutions participating as managers shows broad market support
- Proceeds will help reduce existing debt and provide flexibility for acquisitions
- Additional debt increases company's interest expense obligations
- 5.500% interest rate represents significant ongoing cost
Insights
This
The intended use of proceeds to repay credit lines and commercial paper demonstrates prudent liability management, potentially reducing short-term borrowing costs and extending the debt maturity profile. With a 2030 maturity, this offering provides long-term financing stability. The extensive syndicate of 17 banks suggests broad market distribution and strong institutional interest. The investment-grade backing and S&P 500 membership of Extra Space provide additional credibility to this offering.
In simple terms: Extra Space is borrowing more money at a fixed rate to pay off other debts that might have variable rates or shorter terms. It's like refinancing a mortgage to lock in a good rate for a longer time, which can help manage future interest costs and reduce financial risk.
This debt offering strengthens Extra Space's financial flexibility following its recent Life Storage acquisition. The timing is strategic, as the self-storage sector continues to show resilience despite broader market uncertainties. The
The company's ability to secure additional financing through multiple top-tier financial institutions reflects strong institutional confidence in its business model and growth strategy. The fungibility with existing notes should enhance trading liquidity and potentially lead to tighter spreads. The focus on acquisition opportunities in the use of proceeds suggests Extra Space is positioning itself for continued strategic growth in the self-storage market.
For the average investor: Think of this like Extra Space getting an extension on their credit line with better terms, while also getting extra cash ready in case they find good deals on new storage facilities to buy. It's a sign they're planning for growth while being smart about their debt costs.
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 its commercial paper program, 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 Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd Avenue South, Suite 1000,
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.
FAQ
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