8-KMaterial AgreementsFinancial EventsExhibits & Filings

Public Storage 8-K Report, Material Agreement (Jan 24, 2020)

Filed January 24, 2020For 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 January 24, 2020, to report the completion of its offering of €500 million in 0.875% Senior Notes due 2032. These notes are unsecured and unsubordinated, ranking equally with existing and future unsecured and unsubordinated debt. This issuance represents a strategic move by Public Storage to secure long-term, low-cost financing. The notes mature in 2032, offering a significant runway for the company to utilize these funds. The low interest rate of 0.875% is particularly noteworthy and reflects a strong credit profile for Public Storage in the market. Investors should note the covenants within the Indenture, which include limitations on additional indebtedness and a requirement to maintain unencumbered assets at a level of at least 125% of total unsecured indebtedness, aimed at protecting bondholders.

Key Highlights

  • 1Completion of a €500,000,000 offering of 0.875% Senior Notes due 2032.
  • 2The Notes are unsecured and unsubordinated, ranking equally with other senior unsecured debt.
  • 3Maturity date for the Notes is January 24, 2032.
  • 4The annual interest rate on the Notes is 0.875%, payable annually.
  • 5The company has the option to redeem the Notes under specific conditions, including a make-whole provision or in the event of adverse tax law changes.
  • 6The Indenture includes covenants limiting additional secured and unsecured debt, and requiring a minimum ratio of unencumbered assets to unsecured indebtedness (125%).
  • 7The offering was conducted under a previously filed shelf registration statement.

Frequently Asked Questions

Public Storage completed an offering of €500,000,000 (500 million Euros) in Senior Notes with a coupon rate of 0.875% per annum.

The Senior Notes are due to mature on January 24, 2032.

The Notes are direct, unsecured, and unsubordinated obligations of the Company. They will rank equally in right of payment with all of Public Storage's existing and future unsecured and unsubordinated indebtedness.

Yes, the Indenture contains covenants that limit the ability of Public Storage to incur additional secured and unsecured indebtedness and to merge, consolidate, or sell substantially all of its assets, subject to certain exceptions. Additionally, the company is required to maintain total unencumbered assets of at least 125% of total unsecured indebtedness.