National Storage to repay revolver debt via preferreds proceeds

By Sarah Lizee

Olympia, Wash., Oct. 3 – National Storage Affiliates Trust said its operating partnership plans to repay borrowings under its revolving credit facility using proceeds from a new issue of preferred stock, according to a prospectus filed with the Securities and Exchange Commission.

Initially, National Storage Affiliates will use the proceeds to contribute to the operating partnership in exchange for series A preferred units. The operating partnership will then use the proceeds to repay revolver debt.

The revolver matures in May 2020 but may be extended by one year with an extension fee of 0.15% of the total borrowing commitment at the time of extension. Interest is equal to one-month Libor plus 140 basis points for an effective rate of 2.63% per annum as of Sept. 30.

As of Sept. 30, the revolver had roughly $200 million outstanding.

Remaining proceeds will be used for general corporate purposes.

The real estate investment trust is based in Greenwood Village, Colo.

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