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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
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.