8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Sep 14, 2021)

Filed September 14, 2021For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) announced on September 14, 2021, the pricing of an underwritten public offering of $600 million aggregate principal amount of 2.350% senior notes due 2032. These notes will be fully and unconditionally guaranteed by the Company, Extra Space Storage LP, ESS Holdings Business Trust I, and ESS Holdings Business Trust II, providing an additional layer of security for noteholders. The offering was made through an underwriting agreement with Wells Fargo Securities, LLC and PNC Capital Markets LLC, acting as representatives for the underwriters. The company intends to strategically utilize the net proceeds from this significant debt issuance for several key purposes. A primary objective is to fund potential acquisition opportunities, signaling a growth-oriented strategy. Additionally, the proceeds will be used to repay outstanding amounts under the company's credit facilities and for general corporate and working capital needs. This move suggests proactive capital management and a commitment to maintaining financial flexibility for future investments and operational requirements.

Key Highlights

  • 1Announced $600 million in aggregate principal amount of 2.350% senior notes due 2032.
  • 2Notes are fully and unconditionally guaranteed by Extra Space Storage Inc., Extra Space Storage LP, ESS Holdings Business Trust I, and ESS Holdings Business Trust II.
  • 3Proceeds are earmarked for funding potential acquisition opportunities, indicating strategic growth initiatives.
  • 4Net proceeds will also be used to repay outstanding amounts under the company's credit lines.
  • 5Funds will support general corporate and working capital purposes.
  • 6Underwriting services provided by Wells Fargo Securities, LLC and PNC Capital Markets LLC.

Frequently Asked Questions

The primary purposes for the $600 million senior notes offering are to fund potential acquisition opportunities, repay outstanding amounts under the company's credit lines, and for general corporate and working capital purposes. This indicates a focus on growth and maintaining financial flexibility.

The new senior notes will bear an interest rate of 2.350% and have a maturity date in 2032.

The senior notes are fully and unconditionally guaranteed by Extra Space Storage Inc., Extra Space Storage LP, ESS Holdings Business Trust I, and ESS Holdings Business Trust II.

Yes, certain underwriters or their affiliates may receive customary fees and commissions. Additionally, if proceeds are used to repay outstanding borrowings under the company's credit facilities, and such underwriters or their affiliates are lenders under those facilities, they would receive their proportionate share of the repaid amount.