National Storage Affiliates Trust Announces Signing of $450 Million Debt Private Placement

Rhea-AI Summary

National Storage Affiliates Trust (NSA) announced an agreement to issue $450 million in senior unsecured notes with varying maturities and interest rates ranging from 2.72% to 3.06%. The weighted average maturity is 11.2 years and the average coupon is 2.88%. Proceeds will be used to repay existing debts related to property acquisitions and for general corporate purposes. The notes will be offered under exemptions from the Securities Act and will not be registered. The funding for the notes is planned for late 2021 and early 2022.

Positive

• Issuing $450 million in senior unsecured notes improves capital structure.
• Weighted average maturity of 11.2 years provides long-term financial stability.
• Average coupon rate of 2.88% is relatively low, minimizing interest expenses.

Negative

• Existing indebtedness indicates prior financial obligations that could constrain future liquidity.

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- National Storage Affiliates Trust (“NSA” or the “Company”) (NYSE: NSA) today announced the Company's operating partnership entered into an agreement to issue $75.0 million of 2.72% senior unsecured notes due November 30, 2030, $175.0 million of 2.81% senior unsecured notes due November 30, 2031, $125.0 million of 2.96% senior unsecured notes due November 30, 2033, and $75.0 million of 3.06% senior unsecured notes due November 30, 2036 (the "Senior Unsecured Notes") in a private placement to certain institutional investors.

In aggregate, the Senior Unsecured Notes have a weighted average maturity of 11.2 years and a weighted average coupon of 2.88%. Funding of the senior unsecured notes due 2031 is expected to occur on or before December 31, 2021, subject to customary closing conditions. Funding of the remaining Senior Unsecured Notes is expected to occur on or before January 28, 2022, subject to customary closing conditions. The Company plans to use the proceeds to repay existing indebtedness related to the acquisition of various properties and for general corporate purposes.

The Senior Unsecured 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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful.

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 located within the top 100 metropolitan statistical areas throughout the United States. As of September 30, 2021, the Company held ownership interests in and operated 940 self storage properties located in 38 states and Puerto Rico with approximately 60.4 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 2000 Index of Companies and the S&P MidCap 400 Index.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006590/en/

George Hoglund, CFA

Vice President - Investor Relations

720-630-2160

Source: National Storage Affiliates Trust

FAQ

What is National Storage Affiliates Trust's recent financial move?

NSA announced the issuance of $450 million in senior unsecured notes.

What are the interest rates on NSA's new unsecured notes?

The interest rates range from 2.72% to 3.06%.

When is the funding for NSA's new notes expected to occur?

Funding is expected to occur on or before December 31, 2021, and January 28, 2022.

How will NSA use the proceeds from the senior unsecured notes?

The proceeds will be used to repay existing debts and for general corporate purposes.

What is the maturity profile of NSA's senior unsecured notes?

The notes have a weighted average maturity of 11.2 years.