Summary
Public Storage (PSA) filed an 8-K on November 27, 2012, to report the execution of an Equity Distribution Agreement on November 26, 2012. This agreement allows its affiliate, PSAC Development Partners, L.P., to sell up to 712,400 shares of Public Storage's common stock from time to time. These shares were previously acquired by the affiliate through open market purchases. The agreement is with Merrill Lynch, Pierce, Fenner & Smith Incorporated, acting as the sales agent. This filing indicates a potential increase in the float of Public Storage shares available for trading. Investors should monitor the rate and volume of these sales, as well as the market's reaction, as it could influence the stock price. The involvement of Merrill Lynch, an affiliate of one of Public Storage's credit facility lenders, is also noted.
Key Highlights
- 1Public Storage entered an Equity Distribution Agreement on November 26, 2012.
- 2The agreement allows an affiliate, PSAC Development Partners, L.P., to sell up to 712,400 common shares.
- 3The shares to be sold were acquired by the affiliate through prior open market purchases.
- 4Merrill Lynch, Pierce, Fenner & Smith Incorporated is appointed as the Sales Agent for these potential sales.
- 5This arrangement facilitates the potential sale of a significant block of shares in the open market.
- 6The filing notes that Merrill Lynch and its affiliates have provided services to Public Storage in the past.
- 7An affiliate of the Sales Agent is a lender under Public Storage's existing credit facility.