Public Storage prices $900M senior notes offering at 4.855% rate

Public Storage (NYSE: PSA) announced that its subsidiary, Public Storage Operating Company, has priced a public offering of $900 million in fixed-rate senior notes, guaranteed by the parent company, according to a press release.

The notes are structured in two tranches. The first is $400 million due February 1, 2032, carrying a 4.700% annual interest rate and issued at 99.283% of par value. The second is $500 million due August 15, 2036, with a 5.150% annual rate issued at 98.553% of par value. Including the effect of prior interest rate swaps, the 2036 notes carry an effective rate of 4.979%. The combined weighted average effective interest rate is 4.855%.

The offering is expected to close on July 20, 2026, subject to customary closing conditions. Proceeds are intended to partially finance the company's pending acquisition of National Storage Affiliates Trust, with remaining funds directed toward general corporate purposes, debt repayment, and self-storage facility investments.

The notes offering is not contingent on the completion of the National Storage Affiliates Trust acquisition. If that acquisition is not completed, Public Storage would be required to redeem the outstanding notes at 101% of principal plus accrued interest.

Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC served as joint book-running managers for the offering.

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