SmartStop Self Storage REIT, Inc. Receives BBB-Investment Grade Credit Rating from KBRA and Closes $150 Million Private Placement
LADERA RANCH, Calif.–(BUSINESS WIRE)–SmartStop Self Storage REIT, Inc. (“SmartStop” or the “Company”), a self-managed, fully integrated self-storage company, today announced that it has been awarded an investment grade credit rating by Kroll Bond Rating Agency, Inc. (“KBRA”) of BBB- with a steady outlook. In connection with the rating announcement, SmartStop announced that its operating partnership has issued $150 million of 4.530% Senior Notes due April 2032 (the “Notes”). The Company intends to use the proceeds of the Notes to repay existing secured debt.
The issuance of the Notes will be in two tranches of financing, with the first tranche of $75 million occurring on April 19, 2022 and the second tranche of $75 million to occur on May 25, 2022. The Notes are subject to a series of financial and other covenants substantially similar to our operating company’s existing $700 million syndicated credit facility (the “Credit Facility”). The Notes will equal the Credit Facility and will share the existing Collateral Pool. The Notes and the Credit Facility are currently secured by a pledge of interests, but may become unsecured at the option of the Company and upon the satisfaction of certain conditions for the release of the security.
Citigroup Global Markets Inc. and KeyBanc Capital Markets, Inc. served as joint principal selling agents for the Notes.
About SmartStop Self Storage REIT, Inc. (SmartStop):
SmartStop is a self-managed REIT with a fully integrated operations team of approximately 420 self storage professionals who are focused on growing the SmartStop® Self Storage brand. SmartStop, through its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self storage programs. As of March 31, 2022, SmartStop owned and managed a portfolio of 165 properties in 20 states and Ontario, Canada, and comprising approximately 112,000 units and 12.8 million leasable square feet. SmartStop and its affiliates own or manage 19 operating self-storage properties in the Greater Toronto Area, totaling approximately 16,200 units and 1.7 million leasable square feet.
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered in the US, EU and UK, and is appointed to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in several jurisdictions.