By Stephanie N. Rotondo
Phoenix, Sept. 11 - Public Storage is selling $450 million of 5.375% series V cumulative perpetual preferred shares of beneficial interest, a trader told Prospect News on Tuesday.
The deal came at the low end of talk and was upsized from $200 million.
There is a $67.5 million over-allotment option.
The joint bookrunning managers are Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.
The preferreds are redeemable on or after Sept. 30, 2017.
The Glendale, Calif.-based real estate investment trust will apply to list the new series of preferreds on the New York Stock Exchange under the ticker symbol "PSAPV."
Proceeds will be used to redeem all outstanding 6.45% series X cumulative preferreds and all 6.45% series F cumulative preferreds. Any remaining funds will be used for general corporate purposes, which might include investments in self-storage facilities and the redemption of other preferred issues.
| Issuer: | Public Storage
|
| Securities: | Series V cumulative preferred shares of beneficial interest
|
| Amount: | $450 million, or 18 million depositary shares
|
| Greenshoe: | $67.5 million, or 2.7 million depositary shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-manager: | RBC Capital Markets LLC
|
| Dividend: | 5.375%, payable quarterly beginning Dec. 31
|
| Price: | Par of $25 per depositary share
|
| Yield: | 5.375%
|
| Call option: | On or after Sept. 30, 2017
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 20
|
| Expected listing: | NYSE: PSAPV
|
| Cusip: | 74460W800
|
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