CubeSmart (NYSE: CUBE), a self-administered and self-managed real estate investment trust focused on self-storage facilities, announced today that its operating partnership, CubeSmart, L.P. (the “Operating Partnership”), has priced an underwritten public offering of $250 million of 4.375% senior unsecured notes due December 15, 2023. The notes were priced at 98.995% of the principal amount to yield 4.501% to maturity. The notes are fully and unconditionally guaranteed by CubeSmart. The offering is expected to close on December 17, 2013, subject to customary closing conditions.
The net proceeds from this offering are expected to be approximately $245.4 million after deducting the underwriting discount and estimated transaction expenses payable by us. The Operating Partnership intends to use the net proceeds to repay all of the outstanding indebtedness under the unsecured term loan portion of our credit facility maturing in 2014 and the balance of the net proceeds to repay a portion of the outstanding indebtedness incurred under the revolving portion of our credit facility in connection with the financing of our recent acquisition of 35 storage facilities located in Texas and one storage facility in North Carolina.
Wells Fargo Securities, LLC, Jefferies LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint book-running managers for the offering. Barclays Capital Inc., RBS Securities Inc., Regions Securities LLC, SunTrust Robinson Humphrey, Inc., and U.S. Bancorp Investments, Inc. acted as co-managers for the offering.
The offering is being made only by means of a prospectus supplement and accompanying prospectus which are part of an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on September 16, 2011. When available, copies of the prospectus supplement and accompanying prospectus may be obtained by contacting Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Capital Markets Client Support or by calling toll-free 1-800-326-5897 or by emailing email@example.com; Jefferies LLC, Attention: Debt Syndicate Prospectus Department, 520 Madison Avenue, 12th floor, New York, NY 10022, or by calling toll-free at 1-877-547-6340 or by emailing Prospectus_Department@Jefferies.com; or Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, New York, NY 10038, Attention: Prospectus Department or by emailing firstname.lastname@example.org. Alternatively, you may request these documents for free by visiting the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
CubeSmart is a self-administered and self-managed real estate investment trust. The Company’s self-storage facilities are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2012 Self-Storage Almanac, CubeSmart is one of the top four owners and operators of self-storage facilities in the United States.