European self-storage facilities provider and Public Storage affiliate Shurgard Self Storage's initial global offering of new shares priced at €23 apiece.
The implied market capitalization of the company will be €2.04 billion based on the final offer price, representing 88.94 million outstanding shares.
Shurgard will issue a total of €575 million of new shares in a private placement, with up to €75 million of the shares to be offered as part of an overallotment option. The offered shares represent 28.1% of the total shares of the company.
Upon the closing of the offering, the company will have a total of 88,935,681 shares outstanding.
The shares are expected to trade under the symbol SHUR on the Euronext Brussels starting Oct. 15 on an if-and-when-issued basis. Settlement and delivery of the sold shares are scheduled for Oct. 16, while unconditional trading is expected to commence on Oct. 17.
The company expects net proceeds of around €550 million from the offering, which will be used to repay borrowings, including a €200.0 million bridge facility and all amounts outstanding under a bilateral revolving facility agreement; to fund the expected acquisition of Kensington store in London in October; and to fund future development, redevelopment and acquisition opportunities; as well as any required repurchase of the company's shares.
Shurgard has agreed to a lock-up undertaking starting from Oct. 11 and ending 180 days thereafter, subject to certain carve-outs and exceptions, while Shurgard European Holdings LLC and Public Storage have agreed to a lock-up period from Oct. 11 until 180 days after Oct. 16, subject to certain carve-outs. Shurgard's senior management also agreed to such undertaking during the period commencing Oct. 11 and ending 360 days from Oct. 16, subject to certain carve-outs.
The underwriters for the offering include joint global coordinators and joint book runners BNP Paribas, JP Morgan Securities PLC and Société Générale, as well as joint book runners HSBC Bank PLC and Kempen & Co. NV.
Heitman LLC and GreenOak Real Estate Advisors LLP acted as advisers to the institutional investor in Shurgard European Holdings LLC.