8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Nov 8, 2013)

Filed November 8, 2013For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) filed an 8-K on November 8, 2013, to report on a successful equity offering that closed on November 8, 2013. The company issued and sold 4,500,000 shares of common stock, with an additional 675,000 shares potentially sold under the underwriter's option, raising approximately $205.8 million in net proceeds after fees. These proceeds are strategically earmarked for significant growth initiatives, including the partial funding of a recently announced acquisition of 17 properties for roughly $200 million, as well as five other pending acquisitions totaling $50.4 million. The remaining funds will be used to reduce outstanding debt on secured lines of credit and for general corporate purposes. Investors should note that these acquisitions are contingent upon satisfactory due diligence and the fulfillment of closing conditions, with an intended closing before the end of the first quarter of 2014.

Key Highlights

  • 1Successful completion of a 4,500,000 share common stock offering (plus potential over-allotment) on November 8, 2013.
  • 2Raised approximately $205.8 million in net proceeds from the equity offering.
  • 3Proceeds will partially fund the acquisition of a 17-property portfolio for approximately $200 million.
  • 4Funds will also support five other pending acquisitions totaling $50.4 million.
  • 5Intent to use remaining proceeds to repay secured line of credit debt and for general corporate needs.
  • 6Acquisitions are subject to closing conditions and due diligence, with an expected close before Q1 2014.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the details of a significant equity offering by Extra Space Storage Inc. that closed on November 8, 2013, and to outline the intended use of the net proceeds.

Extra Space Storage raised approximately $205.8 million in net proceeds from the sale of 4,500,000 shares of common stock, after accounting for underwriting discounts and estimated expenses. An additional 675,000 shares could have been sold under the underwriter's option.

The capital raised is primarily intended for growth through acquisitions. It will be used to partially finance the acquisition of a portfolio of 17 properties for approximately $200 million and five other pending acquisitions totaling $50.4 million. A portion will also be used to reduce outstanding debt and for general corporate purposes.

No, the acquisitions are not guaranteed. They are subject to the satisfactory completion of due diligence and the satisfaction of other closing conditions. While the company intends to close them before the end of the first quarter of 2014, there is no assurance they will close on the described terms, or at all.