Summary
Public Storage (PSA) announced on December 2, 2013, the execution of a one-year, $700 million term loan agreement with Wells Fargo Bank, National Association. This new credit facility is intended for general corporate purposes and matures on December 2, 2014. The agreement includes interest rates based on LIBOR plus an applicable margin, which will initially be set at LIBOR plus 0.900%, subject to adjustment based on the Company's leverage ratio. The loan also mandates compliance with certain financial maintenance covenants, along with other standard affirmative and negative covenants and default provisions, which are typical for such financing arrangements. The company also notes that Wells Fargo and its affiliates have provided and may continue to provide financial services in the ordinary course of business.
Key Highlights
- 1Public Storage entered into a new $700 million term loan facility.
- 2The term loan has a maturity date of December 2, 2014, providing a one-year financing period.
- 3Proceeds from the term loan are designated for general corporate purposes.
- 4The interest rate is variable, tied to LIBOR plus an initial margin of 0.900%, adjustable based on leverage.
- 5The agreement includes standard financial maintenance covenants and other affirmative/negative covenants.
- 6Wells Fargo Bank, National Association is both the lender and the agent for the term loan.