Summary
Public Storage (PSA) filed an 8-K on June 27, 2007, to report a material definitive agreement related to the issuance of new preferred stock. Specifically, the company entered into an Underwriting Agreement for the sale of 6,000,000 depositary shares, each representing a 1/1000th interest in a 7.000% Cumulative Preferred Share of beneficial interest, Series N. An overallotment option for an additional 900,000 depositary shares was also granted. This issuance introduces new preferred equity into the company's capital structure. The terms of these Series N Preferred Shares impose certain restrictions on the company's ability to make distributions on, redeem, purchase, acquire, or make liquidation payments on any parity or junior shares if distributions on the Series N Preferred Shares are not declared. This filing is important for investors to understand the new layer of preferred capital and its potential impact on distributions and flexibility for other equity holders.
Key Highlights
- 1Public Storage entered into an Underwriting Agreement for the sale of 6,000,000 depositary shares.
- 2Each depositary share represents a 1/1000th interest in a 7.000% Cumulative Preferred Share, Series N.
- 3The company granted an overallotment option to purchase up to 900,000 additional depositary shares.
- 4The issuance of these Preferred Shares impacts the company's ability to make distributions on or redeem parity or junior shares if preferred distributions are not met.
- 5The company's Board of Trustees is authorized to issue up to 100,000,000 preferred shares, and these Series N shares are being designated under that authority.
- 6The filing includes the Underwriting Agreement, Articles Supplementary for the Preferred Shares, and the Master Deposit Agreement as exhibits.