Extra Space Storage Inc. Announces Offering of 5,200,000 Shares of Common Stock
SALT LAKE CITY, Nov. 5, 2012 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company") today announced that it will issue and sell 5,200,000 shares of its common stock in a public offering. Citigroup is acting as the sole book-running manager for the offering. The Company will grant the underwriter a 30-day option to purchase up to an additional 780,000 shares.
The Company intends to use the net proceeds of this offering to fund its acquisition of 28 properties that are under contract or letter of intent with an aggregate purchase price of $190.2 million, to repay a portion of the outstanding indebtedness under its secured lines of credit and for other general corporate and working capital purposes. The pending acquisitions include the purchase of a joint venture partner's interest in one of the Company's existing joint ventures that owns 21 self-storage properties in 11 states, resulting in full ownership of the joint venture by the Company, as well as the purchase of seven additional properties that are located in Florida, Maryland, Massachusetts and New Jersey.
These pending acquisitions are subject to the completion of the Company's due diligence, the satisfaction of other closing conditions and, in the case of the acquisition of the joint venture partner's interest, the negotiation and execution of a definitive purchase agreement. The Company intends to close each of these acquisitions by December 31, 2012; however, there can be no assurances that these conditions will be satisfied or that the acquisitions will close on the terms described, or at all.
An automatic shelf registration statement and preliminary prospectus supplement relating to these securities were previously filed with the Securities and Exchange Commission.
This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted.
The offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained from Citigroup, C / O Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 800-831-9146.
About Extra Space Storage Inc.:
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT that owns and/or operates 910 self-storage properties in 34 states, Washington, D.C. and Puerto Rico. The Company's properties comprise approximately 610,000 units and approximately 66.7 million square feet of rentable space, offering customers a wide selection of conveniently located and secure storage solutions across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage properties in the United States and is the largest self-storage management company in the United States.
Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements related to the completion, timing and size of the proposed offering of securities by the Company, the use of net proceeds therefrom, and the terms, timing and completion of the acquisitions described above. In some cases, forward-looking statements can be identified by terminology such as "believes," "expects," "estimates," "may," "will," "should," "would," "anticipates," or "intends" or the negative of such terms or other comparable terminology. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. All forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements apply only as of the date of this release. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
SOURCE Extra Space Storage Inc.