By Cristal Cody
Tupelo, Miss., May 22 – Life Storage LP sold $350 million of 4% 10-year senior notes on Wednesday at a spread of 167 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) priced at 99.476 to yield 4.064%.
The offering was upsized from $300 million.
The issue priced on the tight side of guidance and better than initial talk in the Treasuries plus 190 bps area.
Citigroup Global Markets Inc., Wells Fargo Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.
The notes are fully and unconditionally guaranteed by parent company Life Storage, Inc.
Proceeds will be used to repay in full the company’s $100 million unsecured term note that matures June 4, 2020 and outstanding borrowings under its unsecured line of credit, with the balance to be used for general corporate purposes.
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.
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | June 15, 2029
|
| Bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | SunTrust Robinson Humphrey, Inc., HSBC Securities (USA) Inc., Jefferies LLC and BB&T Capital Markets
|
| Coupon: | 4%
|
| Price: | 99.476
|
| Yield: | 4.064%
|
| Spread: | Treasuries plus 167 bps
|
| Call features: | Make-whole call before March 15, 2029 at Treasuries plus 25 bps; thereafter at par
|
| Trade date: | May 22
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 3 bps; initial talk at Treasuries plus 190 bps area
|
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