LADERA RANCH, Calif., March 17, 2021 /PRNewswire/ — SmartStop Self Storage REIT, Inc. (“SmartStop”) introduced now that it entered into a multi-currency credit history facility (the “Credit history Facility”) of up to $500 million with a syndicate of banking institutions led by KeyBank Nationwide Association, Wells Fargo, N.A., Citibank, N.A. and Lender of Montreal. The facility is made up of a $250 million revolving credit history facility (the “Revolver”) and a $250 million phrase mortgage (the “Time period Financial loan”), and has an accordion function allowing enlargement of the Credit Facility up to $850 million, topic to particular ailments.
SmartStop also introduced nowadays the completion of the acquisition of Strategic Storage Have confidence in IV, Inc. (“SST IV”) by merger (the “Merger”), in an all-inventory transaction with a full worth of somewhere around $380 million. As a final result of the Merger, SmartStop obtained all of the serious estate owned by SST IV, consisting of 24 wholly-owned self storage facilities positioned throughout 9 states and 6 joint venture houses in the Increased Toronto Spot in many stages of lease up or growth. SmartStop used the majority of web proceeds from the Credit history Facility to spend off present indebtedness, which was held by SmartStop and SST IV.
“This new facility marks a further significant milestone for SmartStop,” explained H. Michael Schwartz, Founder and Executive Chairman of SmartStop. “We have drastically greater our access to, and decreased the cost of, our personal debt money, even though giving an achievable path to getting a fully unsecured borrower. The multi-currency character of the facility enables us to execute our progress strategies both equally in the U.S. and across the border in Canada. The facility was 1.35x oversubscribed in the preliminary syndication, with sizeable commitments from 8 of the largest financial institutions in the planet, a testomony to SmartStop as a organization and our incredible workforce, as effectively as the energy and benefit of our best-in-class self storage portfolio.”
The Revolver has a 3-12 months expression with a maturity date of March 17, 2024 and a one particular-calendar year extension choice. The Phrase Mortgage has a 5-year expression with a maturity day of March 17, 2026. Borrowings underneath the Credit Facility may well be in either U.S. pounds or Canadian pounds at SmartStop’s election. Initial developments less than the Phrase Mortgage bear interest at 195 foundation factors above 30-day LIBOR or 30-working day CDOR, although initial improvements less than the Revolver bear curiosity at 200 foundation details above 30-day LIBOR or 30-working day CDOR. The Credit rating Facility is to begin with secured by a pledge of equity pursuits in selected of SmartStop’s house proudly owning subsidiaries. SmartStop can elect to launch the pledges on the accomplishment of certain economic ailments, generating the Credit history Facility absolutely unsecured and ensuing in a reduction in the relevant curiosity fee, amongst other modifications.
KeyBanc Capital Markets, Inc. and KeyBank National Association served as Joint Lead Arranger and Administrative Agent for the credit score facility. Wells Fargo Securities, LLC, Citibank, N.A. and BMO Funds Marketplaces acted as joint lead arrangers and co-syndication brokers for the credit score facility. PNC Bank, Nationwide Affiliation, Truist Bank, Barclays Lender PLC and Citizens Bank acted as Co-Documentation Agents for the credit rating facility.
About SmartStop Self Storage REIT, Inc. (SmartStop)
SmartStop is a self-managed REIT with a fully integrated functions crew of somewhere around 400 self storage gurus targeted on increasing the SmartStop® Self Storage model. SmartStop, by its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self storage systems. SmartStop is the tenth-premier self storage enterprise in the U.S., with about $1.7 billion of real estate belongings below administration, which includes an owned and managed portfolio of 152 homes in 19 states and Toronto, Canada and comprising about 103,000 units and 11.6 million rentable sq. toes. SmartStop and its affiliates have or control 16 working self storage qualities in the Bigger Toronto Spot, which complete roughly 13,300 units and 1.4 million rentable sq. ft. Added info about SmartStop is obtainable at www.smartstopselfstorage.com.
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