New Issue: Sovran Acquisition prices $600 million 3.5% of 10-year notes with 195 bps spread

By Cristal Cody

Eureka Springs, Ark., June 13 – Sovran Acquisition LP sold $600 million of 3.5% 10-year senior notes at 99.447 to yield 3.566%, according to a FWP filing on Monday with the Securities and Exchange Commission.

The notes due July 1, 2026 priced with a spread of 195 basis points over Treasuries.

The bookrunners were Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., BB&T Capital Markets, HSBC Securities (USA) Inc. and Jefferies LLC.

The notes are fully and unconditionally guaranteed by Sovran Self Storage, Inc.

Proceeds will be used to fund a portion of the company’s $1.3 billion acquisition of LifeStorage, LP.

Williamsville, N.Y.-based Sovran Acquisition, which does business as Uncle Bob’s Self Storage LP, manages self-storage properties in the United States.

Issuer:	Sovran Acquisition LP
Guarantor:	Sovran Self Storage, Inc.
Amount:	$600 million
Maturity:	July 1, 2026
Securities:	Senior notes
Bookrunners:	Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., BB&T Capital Markets, HSBC Securities (USA) Inc. and Jefferies LLC
Coupon:	3.5%
Price:	99.447
Yield:	3.566%
Spread:	Treasuries plus 195 bps
Call feature:	Make-whole call at Treasuries plus 30 bps; if acquisition of LifeStorage, LP is not completed by Dec. 15, 2016, the issuer must redeem the notes at 101%
Pricing date:	June 13
Settlement date:	June 20
Ratings:	Moody’s: Baa2
	S&P: BBB
	Fitch: BBB
Distribution:	SEC registered

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