8-KOther EventsExhibits & Filings

Public Storage 8-K Report, Corporate Update (Oct 5, 2010)

Filed October 5, 2010For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

Summary

Public Storage (PSA) has announced the redemption of all outstanding depositary shares representing its 7.125% Cumulative Preferred Shares, Series B (PSAPrB). This redemption will occur on November 5, 2010, with each depositary share being redeemed at a price of $25, plus any accrued dividends from October 1, 2010, up to the redemption date. This action affects the entire outstanding Series B preferred stock, totaling $108,750,000 before accrued dividends. This is a significant event for holders of PSA's Series B preferred shares, as it signals the company's intention to retire this specific class of preferred stock. Investors should note the redemption price and the inclusion of accrued dividends, which ensures shareholders receive the full benefit owed up to the redemption date. The company's decision to redeem indicates a potential move to refinance its capital structure or a belief that current financing costs are unfavorable.

Key Highlights

  • 1Public Storage (PSA) is calling for redemption of all outstanding depositary shares for its 7.125% Cumulative Preferred Shares, Series B (PSAPrB).
  • 2The redemption date is set for November 5, 2010.
  • 3Each depositary share will be redeemed at $25 per share.
  • 4Holders will also receive accrued dividends from October 1, 2010, through the redemption date.
  • 5The total aggregate redemption amount for all outstanding depositary shares is $108,750,000 (excluding accrued dividends).
  • 6This action is announced via a press release filed as an exhibit to the 8-K.
  • 7The redemption implies a potential refinancing strategy or optimization of the company's capital structure.

Frequently Asked Questions

Public Storage is redeeming all outstanding depositary shares representing these preferred shares. This means the company is buying back all of this specific series of preferred stock from investors.

The redemption is scheduled for November 5, 2010. Each depositary share will be redeemed at $25, plus any accrued dividends from October 1, 2010, up to November 5, 2010.

The aggregate redemption amount, before considering accrued dividends, is $108,750,000. Investors will receive this amount plus the accrued dividends.

Companies typically redeem preferred stock when they can refinance their debt at a lower interest rate, improve their balance sheet, or when the terms of the preferred stock become less attractive compared to current market conditions or alternative financing options.