Summary
Public Storage, Inc. (PSA) announced on March 27, 2007, the execution of a five-year Credit Agreement, establishing a revolving credit facility with an initial capacity of $300 million. This facility can be increased to $450 million within a year, subject to certain conditions. It allows for borrowings in US Dollars, Euros, and British Pounds, and includes subfacilities for letters of credit and swingline loans. The Credit Agreement, which names Wells Fargo Bank, National Association as Agent, includes standard financial covenants such as leverage ratio and interest coverage tests. The proceeds from this facility are earmarked for property development, capital expenditures, debt repayment, general working capital, and other corporate purposes, including potential dividend payments and acquisitions. This new credit line provides PSA with significant financial flexibility to support its ongoing business operations and growth initiatives.
Key Highlights
- 1Public Storage entered into a new five-year Credit Agreement on March 27, 2007.
- 2The agreement establishes a revolving credit facility with an initial maximum borrowing capacity of $300 million.
- 3The facility includes an option to increase the borrowing capacity to $450 million within the first year.
- 4Borrowings can be made in US Dollars, Euros, or British Pounds.
- 5The credit facility includes subfacilities for letters of credit ($50 million) and swingline loans ($75 million).
- 6Proceeds will be used for property development, capital expenditures, debt repayment, working capital, dividends, and acquisitions.
- 7The agreement contains customary financial covenants, including leverage and interest coverage ratios.