Summary
Public Storage (PSA) filed an 8-K on April 12, 2019, to report the completion of its previously announced offering of $500 million in 3.385% Senior Notes due 2029. This action was taken to fund its operations and strategic initiatives. The notes are unsecured and unsubordinated, ranking equally with existing debt, and carry a fixed interest rate with semi-annual payments. The offering was conducted under an existing shelf registration statement and a prospectus supplement filed shortly before the closing. The Indenture governing these notes includes standard covenants restricting the company's ability to incur additional debt and requiring a minimum level of unencumbered assets relative to unsecured debt. This filing is primarily informational, confirming the successful issuance and detailing the terms of the new debt.
Key Highlights
- 1Completion of a $500 million offering of 3.385% Senior Notes due May 1, 2029.
- 2The Notes are direct, unsecured, and unsubordinated obligations of Public Storage.
- 3Interest on the Notes is payable semi-annually at a rate of 3.385% per annum.
- 4The offering was made under a previously established shelf registration statement.
- 5The Indenture includes covenants that limit the incurrence of secured and unsecured debt and require maintaining total unencumbered assets at least 125% of total unsecured indebtedness.
- 6The Notes mature on May 1, 2029.
- 7The company has the option to redeem the Notes at a make-whole price, with redemption at par permitted within three months of maturity.