By Aleesia Forni
Virginia Beach, Dec. 10 - CubeSmart, LP priced $250 million of 4.375% guaranteed 10-year senior notes with a spread of Treasuries plus 170 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (Baa3/BBB-/) priced at 98.995 to yield 4.501%.
Wells Fargo Securities LLC, BofA Merrill Lynch and Jefferies & Co. were the joint bookrunners.
The notes are guaranteed by CubeSmart.
Pricing was at the tight end of talk.
Proceeds will be used to repay all of the outstanding debt under the unsecured term loan portion of the company's credit facility maturing in 2014.
The company also plans to use proceeds to repay a portion of the debt under its revolving credit facility in connection with the acquisition of some storage facilities.
The real estate investment trust of self-storage facilities is based in Wayne, Pa.
| Issuer: | CubeSmart LP
|
| Guarantor: | CubeSmart
|
| Amount: | $250 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 15, 2023
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch, Jefferies & Co.
|
| Co-managers: | Barclays, RBS Securities Inc., Regions Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Coupon: | 4.375%
|
| Price: | 98.995
|
| Yield: | 4.501%
|
| Spread: | Treasuries plus 170 bps
|
| Trade date: | Dec. 10
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 15, 2023, then callable at par
|
| Price talk: | Treasuries plus 175 bps area
|
| Distribution: | SEC registered
|
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