Sovran Self Storage, Inc. (NYSE:SSS) today announced details of
financing arrangements totaling $375 million of senior, unsecured debt.
Proceeds from a four year, $250 million term loan will be used to repay
outstanding balances on the Company’s $100
million revolving credit facility and $39 million of short term notes
maturing later this year. The Company will also repay a $100 million
term loan due in September, 2009. The excess proceeds will be used to
fund the previously announced joint venture with an affiliate of Heitman
LLC, new acquisitions, and to improve and expand the Company’s
existing portfolio.
Additionally, the Company negotiated a three year, $125 million
unsecured line of credit, with an accordion feature of up to $50
million, and an extension provision of up to one additional year.
M&T Bank was the Lead Arranger in both transactions; SunTrust Bank
served as Syndication Agent and HSBC Bank was the Documentation Agent. A
total of thirteen lenders participated in the syndication.
Interest on the line of credit is LIBOR plus 1.375% and the term loan
provides for interest at LIBOR plus 1.625%. The Company has entered into
interest rate swap contracts which effectively fix the interest rate
payable on the four year term loan at 5.97% through September 2009, and
slightly higher from then through June 2012.
David Rogers, Chief Financial Officer of the Company, commented, “This
financing package provides us with the capacity and the flexibility to
expand and improve our business. We’re
appreciative of the support our bank group has shown in a challenging
lending environment.”
Sovran Self Storage, Inc. is a self-administered and self-managed equity
REIT that is in the business of acquiring and managing self-storage
facilities. The Company operates 359 self-storage facilities in
twenty-two states under the name "Uncle Bob's Self Storage"®.
When used within this news release, the words “intends,”
“believes,” “expects,”
“anticipates,” and
similar expressions are intended to identify “forward
looking statements” within the meaning of
that term in Section 27A of the Securities Act of 1933, and in Section
21F of Securities Exchange Act of 1934. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, which
may cause the actual results, performance or achievements of the Company
to be materially different from those expressed or implied by such
forward looking statements.
For more information, please contact David L. Rogers, CFO or Diane
Piegza, VP Corporate Communications at 716-633-1850 or browse the Company’s
Web Site at http://www.sovranss.com.
Sovran Self Storage, Inc.
David L. Rogers, CFO
or
Diane
Piegza, VP Corporate Communications
716-633-1850
