By Devika Patel and Cristal Cody
Knoxville, Tenn., Sept. 28 – Life Storage LP priced an upsized $600 million of 2.4% 10-year senior notes (Baa2/BBB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.083 to yield 2.504%, with a spread of Treasuries plus 97 basis points.
The notes were talked to yield in the 120 bps area over Treasuries with $450 million of notes expected.
The notes are guaranteed by parent Life Storage, Inc.
Wells Fargo Securities, LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc. were the joint bookrunners.
The notes will feature a make-whole call and then a par call. The par call date will be 90 days prior to the maturity date.
Proceeds will be used for general corporate purposes, which may include funding future acquisitions of self-storage properties and repaying debt.
The real estate investment trust owns and manages self-storage properties and is based in Williamsville, N.Y.
| Issuer: | Life Storage LP
|
| Guarantor: | Life Storage, Inc.
|
| Description: | Senior notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 15, 2031
|
| Bookrunners: | Wells Fargo Securities, LLC, PNC Capital Markets LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | HSBC Securities (USA) Inc. and M&T Securities Inc.
|
| Coupon: | 2.4%
|
| Price: | 99.083
|
| Yield: | 2.504%
|
| Spread: | Treasuries plus 97 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until July 15, 2031, then a par call
|
| Trade date: | Sept. 28
|
| Settlement date: | Oct. 7
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Guidance: | Treasuries plus 120 bps area
|
| Cusip: | 53227JAD6
|
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