Summary
This 8-K filing from Public Storage (PSA) dated June 6, 2007, announces the indicative pricing for an initial public offering (IPO) of its European self-storage subsidiary, Shurgard Self Storage Europe Limited ("Shurgard Europe"). The offering on Euronext Brussels is expected to generate gross proceeds between €545 million and €654 million for Shurgard Europe. For Public Storage, the transaction involves the repayment of existing indebtedness using a portion of the proceeds (€124 million) and a significant reduction in its ownership interest in Shurgard Europe, with proceeds ranging from approximately €345 million to €454 million. If an over-allotment option is fully exercised, Public Storage would receive an additional €82 million to €98 million. Following the offering, Public Storage's stake in Shurgard Europe is anticipated to fall below 50%.
Key Highlights
- 1Public Storage's subsidiary, Shurgard Europe, is undertaking an initial public offering (IPO) on Euronext Brussels.
- 2The IPO is expected to generate gross proceeds of €545 million to €654 million for Shurgard Europe.
- 3Public Storage will receive €124 million from Shurgard Europe to repay existing indebtedness.
- 4Public Storage is expected to receive approximately €345 million to €454 million from the sale of its stake in Shurgard Europe.
- 5An over-allotment option could provide Public Storage with an additional €82 million to €98 million in proceeds.
- 6Following the offering, Public Storage's ownership interest in Shurgard Europe is expected to be below 50%.
- 7The completion of the offering is anticipated before the end of June 2007, subject to market conditions.