Public Storage (PSA) announced that the Company's subsidiary, Public Storage Operating Company, has priced a public offering of $875 million aggregate principal amount of senior notes. The Notes will be guaranteed by the Company.
The Notes will be issued in two tranches with a weighted average interest rate of approximately 4.661%.
The first tranche of $475 million aggregate principal amount of fixed rate senior notes due 2030 will bear interest at an annual rate of 4.375%, will be issued at 99.707% of par value and will mature on July 1, 2030. Including the impact of interest rate swaps, the effective interest rate of the 2030 Notes is SOFR plus 92 basis points.
The second tranche of $400 million aggregate principal amount of fixed rate senior notes due 2035 will bear interest at an annual rate of 5.000%, will be issued at 99.557% of par value and will mature on July 1, 2035.
The company noted that it will pay interest on the Notes semi-annually on January 1 and July 1 of each year, commencing January 1, 2026.
The offering is expected to close on June 30, 2025, subject to the satisfaction of customary closing conditions.
Public Storage Operating Company expects to use the net proceeds to repay its outstanding $400 million in aggregate principal amount of its floating rate senior notes due 2025 and for general corporate purposes, including acquisitions of self-storage facilities and repayment of other debt.
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