Extra Space to price $200 million 20-year exchangeables, talked at 3.375%-3.875%, up 17.5%-22.5%

By Kenneth Lim

Boston, March 20 - Extra Space Storage Inc. plans to price $200 million of 20-year exchangeable senior notes on Wednesday after the market closes, talked at a coupon of 3.375% to 3.875% and an initial exchange premium of 17.5% to 22.5%.

The notes will be offered at par. They will be issued by Extra Space operating partnership Extra Space Storage LP and exchangeable into the listed company's common stock. Extra Space will also guarantee the notes.

There is an over-allotment option for a further $30 million.

Citigroup is the bookrunner of the Rule 144A offering.

The exchangeables will be non-callable for the first five years.

There will be a contingent exchange trigger at 130% of the exchange price.

The exchangeables will have dividend and takeover protection.

There will be a net-share settlement feature.

Extra Space, a Salt Lake City-based real estate investment trust that focuses on self-storage facilities, said the proceeds of the deal will be used for acquisitions and for general purposes.

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