8-KMaterial AgreementsExhibits & Filings

Public Storage 8-K Report, Material Agreement (Nov 10, 2009)

Filed November 10, 2009For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

Summary

This 8-K filing by Public Storage (PSA) reports on an amendment to a material definitive agreement concerning a loan to its European affiliate, Shurgard Self Storage SCA. The key amendment extends the maturity date of a significant outstanding loan from March 31, 2013, and increases the interest rate from 7.5% to 9.0% per annum, effective November 1, 2009. This modification impacts a total loan amount of approximately €391.9 million (or $571.8 million as of September 30, 2009), highlighting Public Storage's continued financial support and restructuring of debt obligations with its international operations. Investors should note the increased yield on this debt, which could positively impact future interest income, alongside the extended commitment period.

Key Highlights

  • 1Public Storage amended a loan agreement with its affiliate, Shurgard Self Storage SCA.
  • 2The loan's maturity date was extended to March 31, 2013.
  • 3The interest rate on the loan was increased from 7.5% to 9.0% per annum, effective November 1, 2009.
  • 4The amendment impacts a substantial total loan amount of approximately €391.9 million ($571.8 million as of September 30, 2009).
  • 5This amendment pertains to a material definitive agreement, signaling a significant financial commitment and restructuring with a European subsidiary.

Frequently Asked Questions

This filing announces an amendment to a material definitive agreement, specifically concerning an adjustment to a loan provided by Public Storage and its subsidiary to its European affiliate, Shurgard Self Storage SCA. The key changes involve extending the loan's maturity date and increasing its interest rate.

The maturity date of the loan has been extended to March 31, 2013. Additionally, the interest rate has been increased from 7.5% to 9.0% per annum, effective from November 1, 2009.

The total amount loaned by Public Storage and its affiliates to Shurgard Europe and its affiliates, including this amended loan and others with similar terms, was approximately €391.9 million, which equated to $571.8 million as of September 30, 2009. The increased interest rate will result in higher interest income for Public Storage on this substantial sum.

While this filing details a specific debt instrument amendment, it indicates Public Storage's ongoing financial support and management of its international operations. The increased interest rate is a positive development for Public Storage's income from this loan, but investors should consider the overall economic climate and the performance of Shurgard Europe for a complete picture of financial health.