Extra Space Storage Inc. (NYSE:EXR) announced today that the Company completed $1.15 billion in unsecured bank financing through a senior unsecured credit facility consisting of a $500.0 million senior unsecured revolving credit facility, a $430.0 million senior unsecured five-year term loan and a $220.0 million senior unsecured seven-year term loan (the “Facility”), of which $300.0 million of the unsecured five-year term loan was drawn on October 14, 2016.
“The completion of this credit facility is a significant step in laddering our maturities, reducing our cost of debt, and diversifying our already solid balance sheet,” commented Scott Stubbs, Chief Financial Officer. “This facility will allow our company to continue its healthy growth trajectory. We are pleased with the continued support of our banking partners.”
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., Citibank, N.A., BBVA Compass Bank, Bank of Montreal and Bank of the West each served as Co-Documentation Agents and Morgan Stanley Bank, N.A. and Regions Bank served as Co-Senior Managing Agents.
The credit agreement provides the Company an option to increase capacity by an additional $350.0 million for a total of $1.5 billion. Pricing at closing will be an initial interest rate of LIBOR + 1.40% for the senior unsecured revolving credit facility, LIBOR + 1.35% for the senior unsecured five-year term loan and LIBOR + 1.70% for the senior unsecured seven-year term loan.
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. As of September 30, 2016, the Company owned and/or operated 1,421 self-storage properties in 38 states, Washington, D.C. and Puerto Rico. The Company’s properties comprise approximately 955,000 units and approximately 107 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.