CubeSmart, a publicly traded self-storage real estate investment trust (REIT), will issue a public offering of $250 million of 4 percent senior unsecured notes due Nov. 15, 2025, through its operating partnership CubeSmart LP. The notes were priced at 99.735 percent of the principal amount to yield 4.032 percent to maturity. The notes are unconditionally guaranteed by CubeSmart. The offering is expected to close on Oct. 26 and subject to customary closing conditions, according to a press release.
The net proceeds from the offering are expected to be about $247.2 million. The REIT will use the money to repay debt incurred under the unsecured, revolving portion of its credit facility maturing in 2020. It will also use funds for general expenses, payment of other debt and working capital, company officials said.
Merrill Lynch; Pierce, Fenner & Smith Inc. and Wells Fargo Securities LLC acted as joint book-running managers for the offering. BB&T Capital Markets (a division of BB&T Securities LLC), PNC Capital Markets LLC, Regions Securities LLC, Stifel Financial Corp. and U.S. Bancorp Investments Inc. acted as co-managers.
The public-offering shares will be issued pursuant to an effective shelf-registration statement filed with the Securities and Exchange Commission.
CubeSmart owns or manages 631 self-storage facilities across the United States. Its operating portfolio comprises more than 41 million square feet. The company is listed fourth on the 2015 ISS Top-Operators List, which ranks the industry’s top 100 companies based on total net-rentable square footage.