Sovran Self Storage, Inc. Acquires LifeStorage
July 18 2016 - 8:50AM
Business Wire
Sovran Self Storage, Inc., (NYSE:SSS), a self storage real
estate investment trust (REIT) (“Sovran” or the “Company”),
announced today that it has completed its acquisition of
LifeStorage, LP (“LifeStorage”), a privately-owned self storage
operator, for a purchase price of approximately $1.3 billion. The
purchase was funded primarily with the proceeds of a 6.9 million
share common stock offering the Company completed in May 2016, and
a June 2016 sale of $600 million of 10 year notes with an interest
rate of 3.5%.
“The LifeStorage properties are a tremendous addition to our
portfolio” said David Rogers, Sovran’s Chief Executive Officer.
“We’ve added 84 Class A stores to our portfolio, 55 of which are in
some of our already established key markets. We’ve also gained a
presence in two new markets: Las Vegas, NV and Sacramento, CA. We
welcome the managers and staff at all of these stores to our
family, and thank the employees at LifeStorage and Sovran for their
diligence and hard work these past few weeks to complete this
transaction.”
The newly acquired facilities will strengthen the Company’s
strategic position in its existing markets, including the addition
of 25 facilities in Chicago, 19 facilities in major Texas markets
including eight in Austin and five in Dallas, and three each in
Orlando and Los Angeles. The acquisition also provides entry into
Las Vegas with 17 facilities, and Northern California with ten
facilities, presenting the Company with immediate scale in both
markets, and providing a base from which to pursue the acquisition
of additional properties to fuel future growth.
Wells Fargo Securities, LLC acted as lead financial advisor and
SunTrust Robinson Humphrey also acted as a financial advisor to
Sovran. Phillips Lytle LLP and Hogan Lovells US LLP served as legal
counsel in connection with this transaction.
Citigroup Global Markets Inc. acted as exclusive financial
advisor to LifeStorage and Latham & Watkins LLP served as
counsel to LifeStorage in connection with the transaction.
FORWARD LOOKING STATEMENTS:
When used within this news release, the words “intends,”
“believes,” “expects,” “anticipates,” and similar expressions are
intended to identify “forward looking statements” within the
meaning of that term in Section 27A of the Securities Act of 1933,
and in Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward looking statements. Such factors include, but are not
limited to, the effect of competition from new self storage
facilities, which could cause rents and occupancy rates to decline;
the Company’s ability to evaluate, finance and integrate acquired
businesses into the Company’s existing business and operations; the
Company’s ability to enter new markets where it has little or no
operational experience; the Company’s existing indebtedness may
mature in an unfavorable credit environment, preventing refinancing
or forcing refinancing of the indebtedness on terms that are not as
favorable as the existing terms; interest rates may fluctuate,
impacting costs associated with the Company’s outstanding floating
rate debt; the Company’s ability to comply with debt covenants; the
future ratings on the Company’s debt instruments; the regional
concentration of the Company’s business may subject it to economic
downturns in the states of Florida and Texas; the Company’s ability
to effectively compete in the industries in which it does business;
the Company’s reliance on its call center; the Company’s cash flow
may be insufficient to meet required payments of principal,
interest and dividends; and tax law changes which may change the
taxability of future income.
About Sovran Self Storage, Inc.
Sovran Self Storage, Inc. is an equity REIT that is in the
business of acquiring and managing self storage facilities. The
Company operates approximately 650 self storage facilities in 29
states. For more information, visit www.unclebobs.com, like us on
Facebook, or follow us on Twitter.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160718005674/en/
Sovran Self Storage, Inc.Diane Piegza, 716-650-6115Vice
PresidentInvestor Relations & Community Affairs
Life Storage (NYSE:LSI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Life Storage (NYSE:LSI)
Historical Stock Chart
From Apr 2023 to Apr 2024