Summary
Public Storage (PSA) filed an 8-K on July 14, 2016, to announce a significant capital raise through the issuance of new preferred shares. The company entered into an Underwriting Agreement to sell 12,000,000 depositary shares, each representing a 1/1000th interest in a 4.95% Cumulative Preferred Share of Beneficial Interest, Series D. This offering is a strategic move to bolster its financial position and potentially fund future growth or operational needs. This filing also details the terms of these new preferred shares, including that their issuance will impose certain restrictions on the company's ability to make distributions or acquire other junior or parity shares if distributions on the Series D preferred shares are not declared. The company has filed the necessary Articles Supplementary to designate these shares, demonstrating a structured approach to managing its capital structure and shareholder rights.
Key Highlights
- 1Public Storage issued 12,000,000 depositary shares representing 4.95% Cumulative Preferred Shares, Series D.
- 2The offering was conducted through an Underwriting Agreement with several major financial institutions.
- 3An option to purchase up to 1,800,000 additional depositary shares was granted to underwriters for over-allotment.
- 4The new preferred shares carry a fixed cumulative dividend rate of 4.95%.
- 5Issuance of these preferred shares introduces restrictions on distributions to junior or parity shares if Series D preferred distributions are missed.
- 6The company formally designated 13,800 preferred shares as Series D, with flexibility to issue up to 100,000,000 preferred shares in total.