Self-storage real estate investment trust CubeSmart has completed approximately $800 million in unsecured bank financing through amendments to its existing credit facility and term loan agreements, company officials announced.
"With our amended credit facilities, we benefit from substantially improved pricing as well as extended terms that reinforce our well-staggered debt-maturity profile," said Tim Martin, chief financial officer. "We are delighted to have strong and continued support from our long-standing banking relationships. This recommitment from our banks further solidifies our financial position and enhances our ability to execute on our business plan."
An amended $200 million senior unsecured term loan consists of two $100 million loans, each maturing in June 2018. One was originally a five-year loan set to mature in 2016. The second was originally a seven-year loan whose maturity date is unchanged. The first loan is priced at 1.5 percent over Libor, while the second loan is priced at 2 percent over Libor.
CubeSmart's amended $600 million senior unsecured credit facility consists of a $100 million term loan with a December 2014 maturity, a $200 million loan with a January 2019 maturity, and a $300 million revolving line of credit with a June 2017 maturity. The company has the option to extend the term of the revolver for an additional year. The borrowing rate on the revolver is priced at 1.6 percent over Libor, including fees, and both of the term loans are priced at 1.5 percent over Libor.
The company did not enter into any new hedging arrangements in conjunction with the amended facilities.
CubeSmart owns or manages 519 self-storage facilities across the United States and operates the CubeSmart Network, which consists of more than 800 additional self-storage facilities. According to the Inside Self-Storage Top-Operators List, the company is the fourth largest operator of self-storage facilities in the United States.