By Devika Patel
Knoxville, Tenn., Jan. 24 – CubeSmart, LP priced $350 million of 4.375% 10-year senior notes (Baa2/BBB) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.356 to yield 4.455% with a spread of Treasuries plus 175 basis points.
The bookrunners are Wells Fargo Securities LLC, Barclays and Jefferies & Co.
The notes will be guaranteed by CubeSmart.
Proceeds will be used to repay $200 million of debt under the unsecured term loan portion of CubeSmart’s credit facility due January 2019 and for working capital and other general corporate purposes, which may include debt repayment or repurchases.
The real estate investment trust of self-storage facilities is based in Wayne, Pa.
| Issuer: | CubeSmart, LP
|
| Guarantor: | CubeSmart
|
| Amount: | $350 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2029
|
| Bookrunners: | Wells Fargo Securities LLC, Barclays and Jefferies & Co.
|
| Senior co-managers: | BofA Merrill Lynch, Regions Securities LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., RBC Capital Markets LLC and Stifel, Nicolaus & Co. Inc.
|
| Coupon: | 4.375%
|
| Price: | 99.356
|
| Yield: | 4.455%
|
| Spread: | Treasuries plus 175 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Nov. 15, 2028, then a par call
|
| Trade date: | Jan. 24
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
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