By Andrea Heisinger
New York, June 19 - CubeSmart, LP priced $250 million of 4.8% guaranteed 10-year senior notes on Tuesday at a spread of 320 basis points over Treasuries, a source close to the deal said.
The bonds were sold tighter than price talk in the 350 bps area.
The notes (Baa3/BBB-/) were offered at 99.855 to yield 4.818%.
There is a make-whole call at Treasuries plus 50 bps until April 15, 2022 and a par call after that date.
Bookrunners were Bank of America Merrill Lynch and Wells Fargo Securities LLC.
PNC Capital Markets LLC was the lead manager.
Senior co-managers were RBS Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BMO Capital Markets Corp. and RBC Capital Markets LLC.
The notes are guaranteed by CubeSmart.
Proceeds will be used to reduce borrowings under an unsecured revolving credit facility and for general corporate purposes, including acquisitions and investment in joint ventures, and to repay or repurchase other debt.
The real estate investment trust of self-storage facilities is based in Wayne, Pa.
| Issuer: | CubeSmart, LP
|
| Guarantor: | CubeSmart
|
| Issue: | Senior notes
|
| Amount: | $250 million
|
| Maturity: | July 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities LLC
|
| Lead manager: | PNC Capital Markets LLC
|
| Senior co-managers: | RBS Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., BMO Capital Markets Corp., RBC Capital Markets LLC
|
| Coupon: | 4.8%
|
| Price: | 99.855
|
| Yield: | 4.818%
|
| Spread: | Treasuries plus 320 bps
|
| Call: | Make-whole at Treasuries plus 50 bps until April 15, 2022, after at par
|
| Trade date: | June 19
|
| Settlement date: | June 26
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 350 bps area
|
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