Extra Space Storage has announced that its operating partnership, Extra Space Storage LP, has established an unsecured commercial paper note program in the United States.
Under the terms of the program, the operating partnership may issue from time to time unsecured commercial paper notes up to a maximum aggregate amount outstanding at any one time of $1 billion. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu (equally and without preference) with all of the operating partnership's other unsecured senior indebtedness. The notes will be fully and unconditionally guaranteed by the company. Note proceeds will be used for general corporate purposes.
Extra Space expects to realize cost benefits in the commercial paper market versus its $2.0 billion revolving credit facility, and it expects to use its revolving credit facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program.
The notes to be offered under the commercial paper note program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
In a press release, the company states that this announcement "shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the operating company's commercial paper note program."
Further Reading: