National Storage Affiliates Trust Announces Issuance of $350 Million of Senior Unsecured Notes

Rhea-AI Summary

National Storage Affiliates Trust (NYSE: NSA) has announced that its operating partnership, NSA OP, LP, has issued $350 million of senior unsecured notes in a private placement with institutional investors. The notes have a weighted average maturity of 7.6 years and a weighted average coupon of 5.60%. The issuance consists of three tranches:

• $75 million at 5.40% due September 5, 2028
• $125 million at 5.55% due September 5, 2031
• $150 million at 5.74% due September 5, 2034

NSA plans to use the proceeds to repay outstanding debt and for general corporate purposes. The notes are not registered under the Securities Act and are being offered under an exemption from registration.

Positive

• Secured $350 million in long-term financing
• Weighted average maturity of 7.6 years provides stable long-term funding
• Proceeds to be used for debt repayment, potentially improving balance sheet

Negative

• Increased debt load with $350 million in new notes
• Weighted average coupon of 5.60% may increase interest expenses

Insights

Financial Analyst

NSA's issuance of $350 million in senior unsecured notes is a strategic move to optimize its capital structure. The weighted average maturity of 7.6 years provides long-term financial stability, while the 5.60% weighted average coupon is relatively competitive in the current interest rate environment. This debt issuance allows NSA to refinance existing debt and potentially fund growth opportunities without diluting equity.

The three-tranche structure diversifies maturity dates, reducing refinancing risk. However, investors should note that this increases the company's leverage, which could impact its financial flexibility. The private placement nature of this offering suggests strong institutional investor confidence in NSA's business model and financial health.

Real Estate Investment Expert

This debt issuance by National Storage Affiliates Trust reflects the ongoing demand for self-storage assets in the real estate market. The company's ability to secure $350 million in unsecured notes indicates strong investor confidence in the self-storage sector's stability and growth potential. The planned use of proceeds for debt repayment and general corporate purposes suggests NSA is positioning itself for potential acquisitions or development projects in a competitive market.

The staggered maturity dates (2028, 2031 and 2034) align with a long-term growth strategy, providing NSA with capital to execute its plans over an extended period. This move could strengthen NSA's position in the self-storage REIT space, potentially leading to increased market share and improved operational efficiency.

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- National Storage Affiliates Trust (“NSA” or the "Company") (NYSE: NSA), announced that its operating partnership, NSA OP, LP, has issued $350 million of aggregate principal amount of senior unsecured notes (the “Notes”) with a weighted average maturity of 7.6 years and a weighted average coupon of 5.60% in a private placement with institutional investors.

The Notes consist of three tranches:

• $75 million of 5.40% senior unsecured notes due September 5, 2028;
• $125 million of 5.55% senior unsecured notes due September 5, 2031; and
• $150 million of 5.74% senior unsecured notes due September 5, 2034.

The Company plans to use proceeds from the issuance of the Notes to repay outstanding indebtedness and for general corporate purposes.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered and sold in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act. The Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of June 30, 2024, the Company held ownership interests in and operated 1,052 self storage properties located in 42 states and Puerto Rico with approximately 68.8 million rentable square feet. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 1000 Index of Companies and the S&P MidCap 400 Index.

NOTE REGARDING FORWARD LOOKING STATEMENT

Certain statements contained in this press release constitute a forward-looking statement as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statement is intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond NSA's control and can include information about possible or assumed future results of NSA's business, financial condition, liquidity, results of operations, plans and objectives. Changes in any circumstances may cause NSA's actual results to differ significantly from those expressed in any forward-looking statement. When used in this release, the words "plan," "may" or similar expressions are intended to identify forward-looking statements. For a list and description of such risks and uncertainties, see NSA's most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission, and the other documents filed by NSA with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on NSA's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to us. Forward-looking statements are not predictions of future events. NSA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The information contained in this press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale of these Notes would be unlawful.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909875254/en/

National Storage Affiliates Trust

Investor/Media Relations

George Hoglund, CFA

Vice President - Investor Relations

720.630.2160

ghoglund@nsareit.net

Source: National Storage Affiliates Trust

FAQ

What is the total amount of senior unsecured notes issued by NSA?

National Storage Affiliates Trust (NSA) issued $350 million of senior unsecured notes through its operating partnership, NSA OP, LP.

What are the terms of the senior unsecured notes issued by NSA?

The notes have a weighted average maturity of 7.6 years and a weighted average coupon of 5.60%. They are issued in three tranches with maturities in 2028, 2031, and 2034.

How does NSA plan to use the proceeds from the senior unsecured notes?

NSA plans to use the proceeds from the issuance of the notes to repay outstanding indebtedness and for general corporate purposes.

Are the senior unsecured notes issued by NSA registered under the Securities Act?

No, the notes are not registered under the Securities Act of 1933. They are being offered and sold in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act.