By Cristal Cody
Tupelo, Miss., Nov. 28 – Life Storage LP sold $450 million of 3.875% 10-year senior notes on Tuesday at a spread of 160 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB) priced at 99.523 to yield 3.933%.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey, Inc., Jefferies 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 $225 million owed under the company’s $325 million term note due June 4, 2020 and amounts owed under its line of credit that matures Dec. 10, 2019.
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: | $450 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 15, 2027
|
| Bookrunners: | Wells Fargo Securities LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey, Inc., Jefferies LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BB&T Capital Markets and HSBC Securities (USA) Inc.
|
| Coupon: | 3.875%
|
| Price: | 99.523
|
| Yield: | 3.933%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Sept. 15, 2027; thereafter at par
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 7
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
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