Strategic Storage amends credit agreement with Huntington

Chicago, April 19 – Strategic Storage Trust IV, Inc. worked out an amendment to its existing credit agreement with Huntington National Bank as administrative agent and lead arranger, according to a 424B3 filing regarding the April 13 amendment.

The borrowing capacity has been increased to $107.6 million, and the maturity date has been extended one year to Nov. 30, 2025.

Two special purpose entities have been added as borrowers.

Properties from the additional borrowers were added to the credit facility, and Strategic Storage drew $12.5 million.

Interest is at SOFR plus 261 basis points, adjusted monthly, with a 3.25% floor.

The company entered into an interest rate swap agreement for $60 million whereby SOFR is fixed at 4.01% through the maturity of the loan. The company also entered into a $47.6 million interest rate cap agreement under which SOFR is capped at 2.6% through maturity of the loan. As of April 14, the effective interest rate was 6%.

Payments are interest only until the maturity date.

The borrower may exercise two one-year extension options for a fee.

Prepayment may be made without penalty.

Strategic Storage is a public non-traded REIT based in Ladera Ranch, Calif., focused on income-producing self-storage facilities and related self-storage real estate investments.

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