Benzinga | Nov 15, 2021 05:37PM EST

CubeSmart Reports Commenced 13.5M Share Offering Of Common Stock

CubeSmart (NYSE:CUBE) (the "Company" or "CubeSmart"), the third-largest owner and operator of self-storage properties in the United States, today announced that it has commenced an underwritten public offering of 13,500,000 of its common shares of beneficial interest, par value $0.01 per share ("Common Shares"). 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. 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. ("LAACO"), 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 (the "Storage West Portfolio Acquisition"), which was announced today 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 joint book-running managers for the offering.