Summary
Public Storage (PSA) has announced the issuance of 10,000,000 depositary shares, each representing a 1/1,000th interest in its 6.00% Cumulative Preferred Shares, Series Z. This offering, conducted through an underwriting agreement with major financial institutions, aims to raise capital. The company has also granted the underwriters an option to purchase up to an additional 1.5 million depositary shares to cover potential over-allotments. This issuance introduces a new class of preferred stock that comes with specific terms regarding distributions and redemption. Notably, the terms of these Series Z Preferred Shares may impose restrictions on the company's ability to distribute or redeem other junior or parity securities if preferred distributions are not declared. Investors should review the Articles Supplementary and Master Deposit Agreement for a full understanding of their rights and the company's obligations.
Key Highlights
- 1Public Storage is issuing 10,000,000 depositary shares representing 6.00% Cumulative Preferred Shares, Series Z.
- 2The offering is being conducted under an Underwriting Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, UBS Securities LLC, and Wells Fargo Securities, LLC.
- 3An option to purchase up to 1,500,000 additional depositary shares has been granted to underwriters to cover over-allotments.
- 4The issuance of these preferred shares may impose restrictions on distributions or redemptions of other securities ranking junior to or on parity with the Series Z Preferred Shares if preferred distributions are not paid.
- 5The Board of Trustees has authorized the issuance of up to 100,000,000 preferred shares, and 11,500 have been designated as Series Z.
- 6Several of the underwriters or their affiliates are also lenders and agents under Public Storage's existing credit facilities, which is a common practice in such transactions.