By Rebecca Melvin and Cristal Cody
Concord, N.H., Sept. 14 – Extra Space Storage LP sold $600 million of 2.35% guaranteed senior notes due March 15, 2032 (Baa2/BBB) on Monday at 99.797 to yield 2.372%, for a spread over U.S. Treasuries of 105 basis points, according to additional details of the issue included in an FWP filing with the Securities and Exchange Commission.
Pricing was tighter than talk for a spread in the Treasuries plus 135 bps area.
The notes will be guaranteed by Extra Space Storage Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II.
The notes are optionally callable prior to Dec. 15, 2031 for a make-whole premium of 20 bps over Treasuries plus accrued interest, and also a three-month par call.
Wells Fargo Securities, LLC and PNC Capital Markets LLC were lead bookrunning managers.
J.P. Morgan Securities LLC, TD Securities (USA) LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and U.S. Bancorp Investments, Inc. were also listed as joint bookrunners.
Proceeds will be used to fund potential acquisition opportunities, to repay amounts outstanding from time to time under lines of credit and for other general corporate purposes and working capital purposes.
Extra Space Storage is a real estate investment trust formed to own, operate, manage, acquire, develop and redevelop self-storage properties, or stores. The issuer is based out of Salt Lake City.
| Issuer: | Extra Space Storage LP
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| Guarantors: | Extra Space Storage, Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II
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| Issue: | Senior notes
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| Amount: | $600 million
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| Maturity: | March 15, 2032
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| Bookrunners: | Wells Fargo Securities, LLC, PNC Capital Markets LLC, J.P. Morgan Securities LLC, TD Securities (USA) LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and U.S. Bancorp Investments, Inc.
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| Co-managers: | Regions Securities LLC, Truist Securities, BOK Financial Securities, Inc., Citigroup, Fifth Third Securities, Ramirez & Co., Inc. and Zions Direct, Inc.
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| Coupon: | 2.35%
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| Price: | 99.797
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| Yield: | 2.372%
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| Spread: | 105 bps over Treasuries
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| Call features: | Make-whole call at 20 bps over Treasuries until Dec. 15, 2031, then par call until maturity
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| Trade date: | Sept. 13
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| Settlement date: | Sept. 22
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Price talk: | $350 million at Treasuries plus 135 bps area
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| Cusip: | 30225VAG2
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