8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Apr 20, 2012)

Filed April 20, 2012For Securities:EXR

Summary

This 8-K filing from Extra Space Storage Inc. (EXR), dated April 20, 2012, announces the successful closing of a significant equity offering. The company issued and sold 7,000,000 shares of common stock, with an additional 1,050,000 shares sold under the underwriter's option, raising approximately $226.9 million in net proceeds. This capital infusion is strategically earmarked for key growth initiatives, including funding a substantial acquisition and general corporate purposes. The primary use of the proceeds is to finance the acquisition of a 94.9% interest in ESS PRISA III LLC from Prudential Real Estate Investors (PREI). This acquisition, expected to close in July 2012, is a significant development for EXR. The remaining proceeds will be used to reduce outstanding debt and support other future acquisitions and working capital needs. Investors should note that while the acquisition is intended, its completion is subject to customary closing conditions and there is no certainty it will close as planned.

Key Highlights

  • 1Extra Space Storage Inc. (EXR) completed a public offering of 7,000,000 shares of common stock, plus an additional 1,050,000 shares under the underwriter's option.
  • 2The offering generated approximately $226.9 million in net proceeds.
  • 3Proceeds are designated to fund the acquisition of a 94.9% interest in ESS PRISA III LLC from Prudential Real Estate Investors (PREI).
  • 4The PREI acquisition is expected to close in July 2012, subject to customary closing conditions.
  • 5Remaining proceeds will be used to repay debt under credit lines, fund other potential acquisitions, and for general corporate/working capital purposes.
  • 6The underwriting agreement was with Citigroup Global Markets Inc.

Frequently Asked Questions

The primary purpose of the stock offering was to raise capital to fund the acquisition of a 94.9% interest in ESS PRISA III LLC from Prudential Real Estate Investors (PREI).

The company raised approximately $226.9 million in net proceeds from the sale of common stock.

The company intends to consummate the acquisition in July 2012, subject to customary closing conditions.

The acquisition is subject to customary closing conditions, and there is no assurance that it will close on the terms described or at all. This represents a key risk for investors in the short term.