8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Jun 13, 2023)

Filed June 13, 2023For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) announced via an 8-K filing on June 13, 2023, that its subsidiary, Extra Space Storage LP, has entered into an underwriting agreement for a public offering of $450 million aggregate principal amount of 5.500% senior notes due 2030. These notes will be fully and unconditionally guaranteed by the Company and two business trusts, providing an additional layer of security for investors. The offering is being underwritten by a syndicate led by Wells Fargo Securities, BMO Capital Markets Corp., and TD Securities (USA) LLC. The primary purpose of this debt issuance is to strengthen the company's financial flexibility. The net proceeds are earmarked for repaying outstanding amounts under existing credit lines and for general corporate and working capital needs. This includes the potential funding of future acquisition opportunities, indicating a strategic outlook for growth. The company's management is leveraging existing debt facilities and issuing new notes to optimize its capital structure and support its operational and strategic objectives.

Key Highlights

  • 1Extra Space Storage LP is issuing $450 million in aggregate principal amount of senior notes due 2030.
  • 2The senior notes will carry a fixed interest rate of 5.500%.
  • 3The notes are fully and unconditionally guaranteed by Extra Space Storage Inc., ESS Holdings Business Trust I, and ESS Holdings Business Trust II.
  • 4Proceeds from the offering will be used to repay outstanding amounts under the company's credit lines.
  • 5The company also intends to use proceeds for general corporate and working capital purposes, including potential acquisitions.
  • 6The underwriting syndicate is led by Wells Fargo Securities, BMO Capital Markets Corp., and TD Securities (USA) LLC.

Frequently Asked Questions

The primary purpose of the offering is to repay outstanding amounts under Extra Space Storage's existing lines of credit. Additionally, the proceeds will be used for general corporate and working capital purposes, including funding potential acquisition opportunities.

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

The new notes will have a coupon rate of 5.500% and are due in 2030.

Affiliates of certain underwriters may have existing commercial dealings with Extra Space Storage, including acting as lenders under the company's senior unsecured lines of credit. If proceeds are used to repay indebtedness under these lines of credit, such underwriters or their affiliates will receive a proportionate share of the repaid amount.