1. National Storage Affiliates Trust (NYSE:NSA)
National Storage soared to a new 52-week high on Monday as investors snapped up shares following news that it would merge with Public Storage for an all-stock transaction worth $10.5 billion.
At intra-day trading, the stock climbed to a record high of $40.95 before trimming gains to finish the session just up by 30.35 percent at $40.23 apiece.
In a statement, National Storage Affiliates Trust (NYSE:NSA) said that its shareholders and operating partnership (OP) units are set to receive 0.14 of a share of Public Storage, or equivalent to $41.68 for each NSA unit they own.
The transaction is expected to be completed in the third quarter of the year, subject to closing conditions, including shareholder approval.
Immediately before the closing of the transaction, the two firms will form a new joint venture to hold 313 properties on National Storage Affiliates Trust’s (NYSE:NSA) operating platform, comprising 19.6 million rentable square feet across 28 states and Puerto Rico, with an estimated value of approximately $3.3 billion.
OP unitholders would own 80 percent of the company, while the remaining stake would be owned by Public Storage.
“This transaction with Public Storage follows a thorough process overseen by our Board of Trustees and will deliver a meaningful premium to NSA investors and enable our shareholders and OP unitholders to participate in the significant value creation upside of this combination,” said National Storage Affiliates Trust (NYSE:NSA) CEO David Cramer.
“Public Storage is the ideal strategic fit for our company given its best-in-class brand, operating platform, and future growth profile. We could not be more excited to partner with the Public Storage team to take our platform to the next level,” he noted.
Public Storage will also repay NSA’s existing bank debt and senior unsecured notes, while assuming its existing mortgage debt and Series A, B, and A-1 preferred shares and units.
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