8-KAcquisitions & DispositionsFinancial EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Acquisition Completed (Sep 15, 2004)

Filed September 15, 2004For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) filed an 8-K on September 15, 2004, reporting on two significant events that occurred in early September 2004. The company completed the acquisition of a preferred equity interest in its joint venture, Extra Space Properties Four LLC, for approximately $21.5 million. This acquisition consolidated ownership of 19 self-storage properties, marking the completion of all third-party joint venture interests and the self-storage properties involved in the company's formation transactions as detailed in its S-11/A filing. Additionally, the company's operating partnership entered into a new $100 million secured revolving credit facility with a group of lenders, including Wells Fargo Bank, National Association, as Administrative Agent. This facility, secured by 16 self-storage properties, is intended for general corporate purposes and matures in September 2007, with an option for a one-year extension. The credit facility includes various covenants and requires key management personnel to remain active in the company's operations unless lenders consent to replacements.

Key Highlights

  • 1Completion of acquisition of preferred equity interest in Extra Space Properties Four LLC for $21.5 million.
  • 2Consolidated ownership of 19 self-storage properties through the acquisition.
  • 3Finalized the acquisition of all third-party joint venture interests and formation transaction properties.
  • 4Entered into a new $100 million secured revolving credit facility.
  • 5The credit facility is secured by 16 self-storage properties and has a maturity date of September 9, 2007 (with a one-year extension option).
  • 6Proceeds from the credit facility are intended for general corporate purposes.
  • 7The credit facility contains covenants restricting certain business activities and requiring key management to remain active.

Frequently Asked Questions

The primary purpose of the acquisition was to complete the consolidation of ownership of 19 self-storage properties by acquiring the preferred equity interest in the joint venture Extra Space Properties Four LLC. This action finalized the company's acquisition of all third-party joint venture interests and self-storage properties related to its formation transactions.

The $100 million secured revolving credit facility has a maturity date of September 9, 2007, with a one-year extension option. It is secured by 16 self-storage properties, and the proceeds are for general corporate purposes. Interest rates can be based on Wells Fargo's prime rate or a LIBOR-based rate plus a spread. The facility also includes covenants that restrict second mortgages, mergers, sales of substantially all assets, and other revolving lines of credit.

The $21.5 million acquisition was funded using a portion of the proceeds from the company's initial public offering (IPO).

Yes, the credit facility requires that Kenneth M. Woolley (Chairman, President, and CEO) and Kent W. Christensen (Senior Vice President and CFO) remain active in the management of the company and its operating partnership, unless a replacement is approved by the lenders.