Wells Fargo Investment Holdings invests in company to fund acquisition
By Devika Patel
Knoxville, Tenn., Oct. 24 - CubeSmart arranged a $192.64 million series B cumulative redeemable preferred stock equity line with Wells Fargo Investment Holdings, LLC on Oct. 24, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company will sell up to 8 million preferreds at $24.08 per preferred. The investor may reduce its obligations to purchase the securities if the company completes a public offering of at least $150 million. In addition, if CubeSmart raises more than $500 million, Wells Fargo need not complete any part of the offering. The investor may convert the preferreds to other securities under certain conditions.
The series B preferreds accrue dividends at the rate of the three-month Libor plus 500 basis points until Dec. 25, 2012 and at 12% after that date.
Settlement is expected March 31.
Proceeds will be used to fund the company's planned acquisition of a portfolio of 22 open and operating self-storage facilities from Storage Deluxe.
CubeSmart is a Wayne, Pa.-based owner of self-storage facilities.
| Issuer: | CubeSmart
|
| Issue: | Series B cumulative redeemable preferred stock equity line
|
| Amount: | $192.64 million
|
| Shares: | 8 million
|
| Price: | $24.08
|
| Dividends: | Three-month Libor plus 500 bps until Dec. 25, 2012, then 12%
|
| Warrants: | No
|
| Investor: | Wells Fargo Investment Holdings, LLC
|
| Pricing date: | Oct. 24
|
| Settlement date: | March 31
|
| Stock symbol: | OTCBB: CUBE
|
| Stock price: | $9.75 at close Oct. 24
|
| Market capitalization: | $969.61 million
|
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