NEWS BRIEF: Extra Space Storage is Raising an Additional $355 Million in an Add-On Debt Offering

This new offering is expected to close on (or about), Wednesday, 22 January 2025.

Cottonwood Heights, Utah-based Extra Space Storage (NYSE:EXR) is turning to Wall Street once again, this time to raise $355 million in an add-on debt offering of 5.5% senior notes due in 2030 (before expenses)

According to the Extra Space news release, the debt offering is being conducted through its operating partnership, Extra Space Storage LP, and is considered "... as Additional Notes under the indenture pursuant to which the operating partnership ... issued $450 million of (comparable) 5.500% senior notes (that the partnership issued June 2023)."

As such, and as noted in the Extra Space Form 424B5 filed with the SEC on 17 January 2025, the Additional (and Original) Notes "... will be treated as a single series of securities ... under the indenture."

It also means that Extra Space will have a combined total of ~$800 million under 5.5% the Senior Notes indenture.

Joint book-running managers for this new offering are

• Wells Fargo Securities,
• PNC Capital Markets,
• US Bancorp,
• BMO Capital Markets,
• BofA Securities,
• J.P. Morgan,
• TD Securities, and
• Truist Securities.

Additionally, the co-managers for the offering are

• Regions Securities,
• Scotiabank,
• BOK Financial Securities,
• Citigroup,
• Huntington Capital Markets,
• Zions Capital Markets,
• Academy Securities,
• Fifth Third Securities, and
• Ramirez & Co.

As of 31 December 2024, and according to the Form 424B5 Extra Space filed last Friday (17 January 2025), the company (through its operating partnership) has a combined total of $13.34 billion in debt and/or lines of credit at this time, specifically

• Approximately $1.0 billion of secured notes outstanding;
• Approximately $8.0 billion of unsecured notes outstanding;
• Senior unsecured term loans in the amount of approximately $2.2 billion;
• A secured line of credit with a capacity of up to $140.0 million (of which $25.0 million has been drawn);
• A senior unsecured line of credit with a capacity of up to $2.0 billion (of which approximately $837.0 million has been drawn); and
• A commercial paper program with a capacity of up to $1.0 billion (of which $500.0 million has been issued).

In other words, if I'm reading this most recently filed Form 424B5 correctly, the $13.34 billion in the existing (or potential) Extra Space debt/lines of credit outlined above is in addition to the $800 million in combined/consolidated indenture of 5.5% Senior Notes reported on in this writeup.

As explained in the company news release, this newest senior debt offering is expected to close on (or about) Wednesday, 22 January 2025 and "... will be fully and unconditionally guaranteed by Extra Space and certain of its subsidiaries."

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