European self storage specialist Shurgard has announced the issue of its debut €500 mln Eurobond which attracted a broad and diversified investor base, with an orderbook of €4.6 bn at peak.
The new bonds, maturing on October 22nd 2034, carry a fixed coupon of 3.625% and were priced with a spread of 135bps to Mid-swap.
The notes will be rated BBB+ by S&P, in line with the group’s long term issuer rating, and proceeds will be used for general corporate purposes, including the repayment of the bridge facility put in place in connection with the acquisition of UK peer Lok’nStore closed in August.
Marc Oursin, Shurgard Chief Executive Officer, commented: 'This transaction marks Shurgard’s successful entry into the public Eurobond capital markets, reinforcing the group’s access to diversified funding sources and enhancing our financial flexibility. The very strong demand for our deal further underscores the market’s confidence in Shurgard’s robust business model and solid credit profile.'
BNP Paribas and J.P. Morgan acted as global coordinators on the transaction, together with ABN AMRO, Belfius, and KBC as joint active bookrunners on the offering.
