8-KRegulation FD

Public Storage 8-K Report, Regulation FD Disclosure (Jun 6, 2007)

Filed June 6, 2007For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

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.

Frequently Asked Questions

This 8-K filing announces the indicative pricing for the initial public offering (IPO) of Public Storage's European subsidiary, Shurgard Self Storage Europe Limited, and details the expected financial implications for Public Storage.

Public Storage expects to use €124 million of the proceeds to repay existing indebtedness. Additionally, it anticipates receiving approximately €345 million to €454 million from reducing its ownership interest, with potential for an additional €82 million to €98 million if an over-allotment option is fully exercised.

Following the completion of the offering, Public Storage's ownership interest in Shurgard Europe is expected to be below 50%.

No, this announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities of Shurgard Europe. The securities have not been registered under the Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.