Moody’s rates Sovran notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Sovran Acquisition LP’s proposed senior unsecured notes.

The notes are fully and unconditionally guaranteed by Sovran Self Storage, Inc., the owner of a 99.5% economic interest in Sovran Acquisition, and will rank equally in right of payment with all of the company's existing and future senior indebtedness.

The outlook is stable.

Sovran is using net proceeds to partially fund its recently announced acquisition of LifeStorage LP for $1.3 billion. The REIT recently closed on a common stock offering, receiving roughly $665 million in net proceeds to partially fund the pending acquisition.

As Moody's previously stated, it believes the LifeStorage portfolio, which consists of 84 facilities, will bring significant scale to Sovran's existing portfolio, helping it to gain entry to new markets, including Las Vegas and Northern California.

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