- SmartStop Self Storage REIT (SMA, Financial) transitions its Credit Facility and 2032 Private Placement Notes to fully unsecured status.
- The transition resulted in a 25 basis points reduction in credit spread pricing and a 5 basis points decrease in unused fees.
- SmartStop reduced its Revolving Commitments by $100 million, bringing Total Commitments to $600 million.
SmartStop Self Storage REIT, Inc. (SMA), a leader in the self-storage industry, announced a significant development in its financial structure by achieving the Security Interest Termination Conditions for its Credit Facility and 2032 Private Placement Notes. This strategic move renders both financial instruments fully unsecured.
The transition has generated immediate financial efficiencies, notably a 25 basis points reduction in the credit spread pricing grid associated with Revolving Commitments, and a 5 basis points decrease in unused fees on the Credit Facility. These changes are poised to strengthen the company's financial flexibility significantly.
In line with this restructuring effort, SmartStop decided to reduce its Revolving Commitments under the Credit Facility by $100 million, which brings the Total Commitments down to $600 million. This marks a pivotal milestone shortly after SmartStop's IPO, emphasizing the robust post-IPO balance sheet that positions the company well for future growth.
SmartStop Self Storage REIT operates as an internally managed real estate investment trust with an expansive portfolio of 220 operating properties across 23 states, the District of Columbia, and Canada, totaling approximately 157,200 units and 17.7 million rentable square feet. For more information, visit their website.
