SALT LAKE CITY, Dec. 10, 2018 /PRNewswire/ -- Extra Space
Storage Inc. (the "Company") (NYSE: EXR) announced today that
the Company successfully amended and restated its senior unsecured
credit facility, upsizing the total capacity by $200.0 million to a total of $1.35 billion. The credit facility consists
of a $650.0 million senior unsecured
revolving credit facility due January
2023, a $480.0 million senior
unsecured term loan due January 2024
and a $220.0 million senior unsecured
term loan due October 2023 (the
"Facility").
"The amendment of our credit facility further reduces our cost
of debt and increases our capacity as we continue our healthy
growth trajectory," commented Scott
Stubbs, Chief Financial Officer. "We are pleased with
our access to capital and the support of our banking partners as we
grow and continue to strengthen our balance sheet."
U.S. Bank National Association, Wells Fargo Securities, LLC,
Merrill Lynch, Pierce, Fenner & Smith Incorporated and PNC
Capital Markets LLC were Joint Lead Arrangers and Joint Book
Runners of the Facility. U.S. Bank National Association
served as the Administrative Agent, Wells Fargo Bank, National
Association, Bank of America, N.A. and PNC Bank, National
Association served as Co-Syndication Agents, and TD Bank, PNC Bank,
National Association, JP Morgan Chase Bank, N.A., BMO Harris Bank
N.A., Bank of the West, Citibank, N.A., Compass Bank and Regions
Bank each served as Co-Documentation Agents.
The credit agreement provides the Company an option to increase
capacity by an additional $650.0
million for a total of $2.0
billion. Pricing at closing will be an initial
interest rate of LIBOR + 1.10% for the senior unsecured revolving
credit facility and LIBOR + 1.25% for the senior unsecured term
loans due January 2024 and October
2023.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated,
self-administered and self-managed real estate investment trust and
a member of the S&P 500. As of September 30, 2018, the Company owned and/or
operated 1,606 self-storage properties in 39 states,
Washington, D.C. and Puerto
Rico. The Company's properties comprise approximately 1.1
million units and approximately 122.3 million square feet of
rentable storage space offering customers conveniently located
and secure storage units across the country, including boat
storage, RV storage and business storage. The Company is the second
largest owner and/or operator of self-storage properties in
the United States and is the
largest self-storage management company in the United
States.
Forward Looking Statements:
Certain information set forth in this release contains
"forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements include statements
concerning the Company's growth trajectory, cost of capital, the
potential to increase the capacity of the Facility and the final
interest rate and other terms under the Facility, along with other
statements concerning the Company's plans, objectives, goals,
strategies, future events, future revenues or performance, capital
expenditures, financing needs, plans or intentions relating to
acquisitions and developments and other information that is not
historical information. In some cases, forward-looking statements
can be identified by terminology such as "believes," "estimates,"
"expects," "may," "will," "should," "anticipates," or "intends," or
the negative of such terms or other comparable terminology, or by
discussions of strategy. The Company may also make additional
forward-looking statements from time to time. All such subsequent
forward-looking statements, whether written or oral, by the Company
or on its behalf, are also expressly qualified by these cautionary
statements. There are a number of risks and uncertainties that
could cause the Company's actual results to differ materially from
the forward-looking statements contained in or contemplated by this
release. Any forward-looking statements should be considered in
light of the risks referenced in the "Risk Factors" section
included in the Company's most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. Such
factors include, but are not limited to:
- adverse changes in general economic conditions, the real estate
industry and the markets in which the Company operates;
- failure to close pending acquisitions and developments on
expected terms, or at all;
- the effect of competition from new and existing stores or other
storage alternatives, which could cause rents and occupancy rates
to decline;
- potential liability for uninsured losses and environmental
contamination;
- the impact of the regulatory environment as well as national,
state and local laws and regulations, including, without
limitation, those governing real estate investment trusts
("REITs"), tenant reinsurance and other aspects of the Company's
business, which could adversely affect its results;
- disruptions in credit and financial markets and resulting
difficulties in raising capital or obtaining credit at reasonable
rates or at all, which could impede the Company's ability to
grow;
- increases in interest rates;
- reductions in asset valuations and related impairment
charges;
- the Company's lack of sole decision-making authority with
respect to its joint venture investments;
- the effect of recent changes to U.S. tax laws;
- the failure to maintain the Company's REIT status for U.S.
federal income tax purposes; and
- economic uncertainty due to the impact of natural disasters,
war or terrorism, which could adversely affect the Company's
business plan.
The forward-looking statements are based on the Company's
beliefs, assumptions and expectations of its future performance,
taking into account all information currently available to the
Company. These beliefs, assumptions and expectations are subject to
risks and uncertainties and can change as a result of many possible
events or factors, not all of which are known to the Company. If a
change occurs, the Company's business, financial condition,
liquidity and results of operations may vary materially from those
expressed in its forward-looking statements. You should carefully
consider these risks before you make an investment decision with
respect to the Company's securities.
The Company disclaims any duty or obligation to update or revise
any forward-looking statements set forth in this release to reflect
new information, future events or otherwise.
For more information, please visit www.extraspace.com.
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SOURCE Extra Space Storage Inc.