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U-Store-It Commences $300M Stock Offer

CLEVELAND-The locally headquartered self-storage REIT commences its offering of 15 million shares--not including a 2.25-million-share option that will be granted to the underwriters--as it prepares for additional acquisitions.

By Brian K. Miller | Updated on September 26, 2005

CLEVELAND-U-Store-It Trust has commenced a public offering of 15 million shares in a bid to raise just under $300 milllion. Including the 2.25-million-sf underwriter’s option, the sale would raise closer to $340 million based on the company’s share price, which finished Friday at $19.87, up $0.23 on the day, and is up another $0.08 in morning trading Monday.

In its related SEC filing, the company says it will use $64.2 million of the proceeds to repay the outstanding balance under our revolving credit facility; $130.8 million as cash consideration for the pending acquisitions; $40.2 million to repay outstanding mortgage loans secured by 37 of our facilities; and, the remainder for acquisition and development of additional self-storage facilities, capital improvements and general corporate purposes.

U-Store-It has been acquisitive lately. In late July, it closed on its acquisition of 3.6 million sf from National Self Storage and the Schomac Group Inc. The transaction, which closed in stages, ultimately included 66 self-stage facilities, four office parks and a mobile home park. The purchase price was $212 million. It was paid with stock, cash and assumed debt.

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