8-KMaterial AgreementsFinancial EventsExhibits & Filings

Public Storage 8-K Report, Material Agreement (Apr 12, 2019)

Filed April 12, 2019For Securities:PSAPSA-PRPSA-PFPSA-PGPSA-PHPSA-PIPSA-PJPSA-PMPSA-PNPSA-POPSA-PPPSA-PQPSA-PSPSA-PKPSA-PL

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.

Frequently Asked Questions

This 8-K filing confirms the completion of Public Storage's offering of $500 million in 3.385% Senior Notes due 2029. It details the terms of the notes and the governing indenture, which were previously announced.

The Senior Notes carry a fixed interest rate of 3.385% per annum, payable semi-annually on May 1 and November 1. The notes mature on May 1, 2029.

The Indenture contains covenants that limit the company's ability to incur additional secured and unsecured debt and to engage in certain mergers or asset sales. It also requires Public Storage to maintain total unencumbered assets at a minimum of 125% of its total unsecured indebtedness, subject to certain exceptions.

This issuance adds $500 million in long-term debt to Public Storage's balance sheet. The notes are unsecured and unsubordinated, meaning they rank equally with other senior unsecured debt. The interest payments will be a recurring expense, and the principal repayment is due in 2029. The covenants may also place some constraints on future financial activities.