Before the bell Thursday, real estate investments trust Sovran Self Storage, Inc. (SSS) reported on the completion of financing arrangements of a $375 million of senior unsecured debt, as well as the negotiation of $125 million unsecured line of credit.
The Williamsville, New York-based company noted that the proceeds from a four-year, $250 million term loan would be utilized to repay outstanding balances on its $100 million revolving credit facility and $39 million of short-term notes, which will mature later this year. Sovran will also repay a $100 million term loan that is due in September 2009. Sovran noted that the surplus proceeds would be used to finance a previously announced joint venture with an affiliate of Heitman LLC. The surplus proceeds would also be used to fund new acquisitions, as well as improve and expand its existing portfolio.
In addition, Sovran reported that it has negotiated a three-year, $125 million unsecured line of credit, with an accordion feature of up to $50 million. This credit facility has an extension provision of up to one additional year, Sovran noted.
Further, Sovran stated that the lead arranger in both the transactions was M&T Bank.Corp. (MTB).
SSS is currently trading on the NYSE at $43.00, down $0.35, or 0.81%.
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