Summary
This 8-K filing by Public Storage (PSA) on March 26, 2012, announces the entry into a new five-year Amended and Restated Credit Agreement, effective March 21, 2012. This new agreement replaces the company's previous credit facility from 2007 and establishes a revolving credit line of up to $300 million, with an option to increase it by an additional $300 million under certain conditions. The facility offers flexibility in borrowing terms, including options based on competitive bids, LIBOR, or the Federal Funds Rate, plus an applicable margin tied to PSA's senior debt credit ratings.
Key Highlights
- 1Public Storage (PSA) entered into a new $300 million Amended and Restated Credit Agreement on March 21, 2012, replacing its 2007 credit facility.
- 2The new credit agreement has a five-year term, maturing on March 21, 2017.
- 3The company has the option to increase the revolving credit facility by an additional $300 million, subject to specific conditions.
- 4Borrowings can be used for various corporate purposes, including property development, capital expenditures, debt repayment, working capital, dividends, acquisitions, and share repurchases.
- 5The agreement includes customary financial covenants such as maximum leverage and minimum interest coverage ratios.
- 6As of the filing date (March 27, 2012), Public Storage had no outstanding borrowings under the new credit agreement.