Summary
Extra Space Storage Inc. (EXR) announced on January 19, 2024, through its subsidiary Extra Space Storage LP, the completion of a $600 million public offering of 5.400% Senior Notes due 2034. These notes are fully and unconditionally guaranteed by Extra Space Storage Inc. and two business trusts, EHBT I and EHBT II, providing an additional layer of security for bondholders. The issuance of these senior unsecured notes, priced at 99.745% of their principal amount, aims to bolster the company's capital structure. While the notes rank equally with other senior unsecured debt, investors should note they are effectively subordinated to any mortgage indebtedness and other secured debt, as well as debt held by subsidiaries. The company has the option to redeem these notes under specific conditions, including a make-whole premium, with full redemption at par value permissible three months prior to maturity.
Key Highlights
- 1Extra Space Storage LP issued $600 million in 5.400% Senior Notes due 2034.
- 2The notes are guaranteed by Extra Space Storage Inc., ESS Holdings Business Trust I, and ESS Holdings Business Trust II.
- 3The offering was completed on January 19, 2024.
- 4The notes are senior unsecured obligations, ranking equally with other senior unsecured debt.
- 5The offering price was 99.745% of the principal amount.
- 6The company has the option to redeem the notes in whole or in part, subject to a make-whole premium or par redemption prior to maturity.
- 7The indenture includes restrictive covenants regarding additional indebtedness and asset maintenance.