Summary
Extra Space Storage Inc. (EXR) announced on March 22, 2021, that it has entered into an underwriting agreement to sell 1,600,000 shares of its common stock at a purchase price of $129.1278 per share. The company also granted the underwriters an option to purchase an additional 240,000 shares. This offering is expected to generate approximately $206.3 million in net proceeds, after deducting underwriting discounts and expenses. The capital raised is intended for strategic purposes, including funding potential acquisitions, repaying outstanding amounts under its credit lines, and general corporate needs. This move suggests management's confidence in future growth opportunities and a proactive approach to capital management. The offering is expected to close around March 23, 2021, and is being made under an effective registration statement previously filed with the SEC.
Key Highlights
- 1Extra Space Storage Inc. is issuing 1,600,000 shares of common stock.
- 2An additional option for 240,000 shares has been granted to the underwriters.
- 3The offering is expected to yield approximately $206.3 million in net proceeds.
- 4Proceeds will be used for potential acquisitions, credit line repayment, and general corporate purposes.
- 5The stock offering price is set at $129.1278 per share.
- 6The offering is expected to close on or about March 23, 2021.
- 7The company is utilizing an effective Form S-3 registration statement for the offering.