MALVERN, Pa., Nov. 16, 2021 (GLOBE NEWSWIRE) — CubeSmart (NYSE: CUBE), the third-largest owner and operator of self-storage properties in the United States, today announced that it has priced an underwritten public offering of 13,500,000 of its common shares of beneficial interest, par value $0.01 per share, at a per share public offering price of $51.00, for total gross proceeds of approximately $688.5 million. In connection with the offering, CubeSmart has granted the underwriters of the offering a 30-day option to purchase up to an additional 2,025,000 Common Shares. The offering is expected to close on November 19, 2021 and is subject to customary closing conditions. CubeSmart expects to use all of the net proceeds of the offering to fund a portion of the approximately $1.648 billion cash purchase price, plus the payoff of approximately $40.9 million of existing indebtedness of LAACO, Ltd., for its pending acquisition of LAACO, including its portfolio of 59 open and operating self-storage properties that contain an aggregate of approximately 4.4 million rentable square feet, which includes two self-storage properties owned and operated by two joint ventures owned fifty percent by LAACO, and to pay transaction expenses related thereto. If the Storage West Portfolio Acquisition is not consummated, CubeSmart expects to use the net proceeds from the offering for general corporate purposes, which may include funding acquisitions and other investment opportunities and the repayment or repurchase of existing indebtedness.
Wells Fargo Securities and BofA Securities are acting as lead joint book-running managers for the offering. Barclays, BMO Capital Markets, Jefferies and Truist Securities are acting as book-running managers for the offering. Stifel, BTIG, LLC, Regions Securities LLC, Berenberg, KeyBanc Capital Markets and Raymond James are acting as co-managers for the offering.
This offering will be made under CubeSmart’s existing automatic shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2020. The offering of these Common Shares will be made only by means of a prospectus and a related prospectus supplement, when available. The prospectus supplement related to this public offering and accompanying prospectus will be filed with the SEC. Copies of the prospectus and related prospectus supplement for this offering may be obtained by contacting:
Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, or by telephone at (800) 326-5897, or by email at cmclientsupport@wellsfargo.com; and BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, or by email at dg.prospectus_requests@bofa.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Common Shares, nor shall there be any sale of Common Shares in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. CubeSmart owns or manages 1,251 self-storage properties across the United States. According to the 2021 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
The Company’s mission is to simplify the organizational and logistical challenges created by the many life events and business needs of its customers – through innovative solutions, unparalleled service, and genuine care. The Company’s self-storage properties are designed to offer affordable, easily accessible, and, in most locations, climate-controlled storage space for residential and commercial customers.
