By Cristal Cody
Tupelo, Miss., Sept. 9 – Life Storage LP sold $400 million of 2.2% 10-year senior notes (Baa2/BBB) on Wednesday at a spread of 155 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The issue was talked to print in the Treasuries plus 190 bps area.
The notes priced at 99.524 to yield 2.253%.
The offering was upsized from $350 million.
Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC and Truist Securities, Inc. were the bookrunners.
The notes are guaranteed by parent company Life Storage, Inc.
Proceeds will be used to pay in full the company’s $100 million unsecured term note maturing Aug. 5, 2021 and amounts outstanding on its unsecured line of credit maturing March 10, 2023. The balance of proceeds will be used for future acquisitions of self-storage properties, including from third properties.
Life Storage is a Williamsville, N.Y.-based real estate investment trust that owns and manages self-storage properties.
| Issuer: | Life Storage LP
|
| Guarantor: | Life Storage, Inc.
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| Amount: | $400 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 15, 2030
|
| Bookrunners: | Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., Jefferies LLC and Truist Securities, Inc.
|
| Co-managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and M&T Securities, Inc.
|
| Coupon: | 2.2%
|
| Price: | 99.524
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| Yield: | 2.253%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call before July 15, 2030 at Treasuries plus 25 bps; thereafter at par
|
| Trade date: | Sept. 9
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| Settlement date: | Sept. 23
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 190 bps area
|
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