8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Jun 17, 2015)

Filed June 17, 2015For Securities:EXR

Summary

This Form 8-K filing by Extra Space Storage Inc. (EXR) on June 17, 2015, announces the execution of an underwriting agreement to sell 5,500,000 shares of common stock, with an option for an additional 825,000 shares. The offering is expected to generate approximately $360.6 million in net proceeds. These funds are earmarked for partially financing the acquisition of SmartStop Self Storage, Inc., repaying outstanding debt, and general corporate purposes. The significant event is the planned acquisition of SmartStop Self Storage, Inc., a non-traded REIT, for approximately $1.4 billion. Upon closing, Extra Space Storage will own 121 SmartStop stores and assume management of 43 third-party managed stores. The acquisition is subject to SmartStop stockholder approval and other customary closing conditions, with an expected closing in the latter half of 2015.

Key Highlights

  • 1Extra Space Storage Inc. to offer 5,500,000 shares of common stock, plus an option for 825,000 additional shares.
  • 2Expected net proceeds from the stock offering are approximately $360.6 million.
  • 3Proceeds will be used to partially fund the acquisition of SmartStop Self Storage, Inc.
  • 4The acquisition price for SmartStop is approximately $1.4 billion.
  • 5Upon completion, EXR will own 121 SmartStop stores and manage 43 additional third-party stores.
  • 6The acquisition is contingent on SmartStop stockholder approval and other closing conditions.
  • 7The closing of the SmartStop acquisition is anticipated in the latter half of 2015.

Frequently Asked Questions

The primary purpose of the stock offering is to raise capital to partially fund the acquisition of SmartStop Self Storage, Inc. The proceeds will also be used to repay outstanding debt and for general corporate and working capital needs.

The total purchase price for the acquisition of SmartStop Self Storage, Inc. is approximately $1.4 billion. This includes approximately $1.29 billion in payment from Extra Space Storage and approximately $120 million from the sale of certain assets by SmartStop.

The acquisition is subject to the approval of SmartStop's stockholders and the satisfaction of other customary closing conditions. There is no guarantee that these conditions will be met or that the acquisition will close as planned.

The stock offering is expected to close on or about June 22, 2015. The acquisition of SmartStop is expected to close in the latter half of 2015.