NEWS BRIEF: Utah's Extra Space Storage has Raised $300 Million in a Public Offering Selling 5.7% Senior Notes that Mature in April 2028

Through a new public offering closed yesterday, Cottonwood Heights, Utah-based Extra Space Storage (NYSE:EXR) has raised $300 million by selling 5.7% Senior Notes that "come due" on 01 April 2028.

According to its filing yesterday with the U.S. Securities and Exchange Commission via Form 8-K, this new Extra Space offering of senior notes is in addition to the $500 million in bond funding raised by the company in a similar sale executed on 11 May 2021 that has the same maturity date as the new Senior Notes.

{NOTE: As explained by Investopedia, "Senior Notes" is a term used in financial circles to describe a highly safe type of bond that "... must be repaid before most other debts in the event that the issuer declares bankruptcy." As such, they also generally have a slightly lower interest rate than other bonds, as well as shorter maturity dates.}

Joint Bookrunners for the offering were

• J.P. Morgan Securities;
• BMO Capital Markets;
• TD Securities (USA);
• BofA Securities;
• PNC Capital Markets;
• Truist Securities;
• Wells Fargo Securities; and
• U.S. Bancorp Investments.

Conversely, the Co-Managers for the sale were

• Regions Securities;
• BOK Financial Securities;
• Citigroup Global Markets;
• Huntington Securities;
• Scotia Capital (USA);
• Zions Direct;
• Fifth Third Securities;
• Academy Securities; and
• Samuel A. Ramirez & Company.

According to the company's news release earlier this week, Extra Space "... intends to use the net proceeds from this offering to repay amounts outstanding from time to time under its lines of credit, and for other general corporate and working capital purposes, including funding potential acquisition opportunities."

Since its founding in 1977, Extra Space Storage has grown to become the largest operator of self-storage facilities in the world,

• With nearly 300 million-square-feet of rentable storage space under the Extra Space brand,
• Via over 3,850 owned and/or operated self-storage properties, and that are
• Comprised of ~2.7 million units today.

Publisher's Note:

The birth of a new grandchild coupled with the Thanksgiving holiday last week, led to a two-week hiatus of new reporting and analysis from Utah Money Watch.

For that, I apologize.

That said, our new granddaughter is a delight, and she and her mother are doing great.

So thank you for your understanding and continued support.

David