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Get filing alertsPublic Storage doubles credit facility to $3.5B, cuts borrowing costs 15 basis points
Filed June 25, 2026 · Period ending June 25, 2026 · ~1 min read
Key Changes
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Replaced $1.5B revolving facility (maturing 2027) with new $3.0B revolver maturing 2030, doubling capacity and adding $500M term loan option through Dec 2026
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
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Reduced revolving facility interest rate to SOFR plus 0.650%, down 15 basis points from prior facility, lowering future borrowing costs
Exhibit 99.1 view on EDGAR → -
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Established $1.0B commercial paper program backstopped by revolving facility, providing additional short-term funding flexibility
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
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Facility includes $1.5B accordion option, potentially expanding total capacity to $5.0B; zero borrowings outstanding at closing
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Public Storage significantly expanded its financial capacity by replacing its $1.5 billion revolving credit facility with a new $3.5 billion package comprising a $3.0 billion revolver and $500 million term loan. The company simultaneously reduced its borrowing costs by 15 basis points to SOFR plus 0.650% and established a $1.0 billion commercial paper program for short-term funding needs. With zero borrowings outstanding at closing and an additional $1.5 billion accordion feature available, the company now has up to $5.0 billion in potential liquidity.
For shareholders, this represents enhanced financial flexibility to pursue the company's PS4.0 growth strategy through acquisitions, development projects, and other capital deployment opportunities, while the lower interest rate reduces the cost of future borrowings. The doubled capacity and improved terms reflect Public Storage's strong credit profile and provide substantial dry powder for value-creating investments without immediate dilution to existing shareholders.
Section-by-Section Diff
Event · Item 1.01 — Entry into a Material Definitive Agreement
Public Storage subsidiary entered into a new $3.5 billion credit facility, doubling its prior revolving capacity to $3 billion.
Added in current filing · verify on EDGAR →
The Revolving Credit Facility has an initial maturity date of June 25, 2030, which may be extended by either a period of one additional year or up to two additional periods of six months, subject to the payment of certain extension fees and certain other customary conditions. The DDTL Facility may be borrowed in up to four advances during the period from the Closing Date through the date that is 180 days after the Closing Date and has a scheduled maturity date of June 25, 2031.
The revolving facility matures in four years (June 2030) with options to extend up to two additional years, while the term loan facility has a five-year maturity (June 2031). The term loan must be drawn within 180 days of closing in up to four advances, providing near-term deployment flexibility.
Added in current filing · verify on EDGAR →
Loans under the Credit Agreement bear interest at a per annum rate equal to, at PSOC’s election, (i) either a SOFR rate plus an applicable margin ranging from 0.625% to 1.35% or a base rate plus an applicable margin ranging from 0.00% to 0.35%, with respect to the Revolving Credit Facility, and (ii) either a SOFR rate plus an applicable margin ranging from 0.675% to 1.55% or a base rate plus an applicable margin ranging from 0% to 0.55%, with respect to the DDTL Facility, and in each case, with such applicable margin determined on the basis of the Company’s credit rating in effect from time to time.
Interest rates are based on SOFR or base rate plus credit-rating-dependent margins. The revolving facility pricing ranges from SOFR plus 0.625% to 1.35%, while the term loan ranges from SOFR plus 0.675% to 1.55%. The credit-rating-based pricing structure rewards the company's strong credit profile with lower borrowing costs.
Show 1 minor / wording change
Added in current filing · verify on EDGAR → · paraphrased
Borrowings under the Credit Agreement may be used, among other things, for property development costs, capital expenditures, repayment of indebtedness, general working capital needs and other general corporate purposes, including payment of dividends, acquisitions, and repurchases and redemptions of securities otherwise permitted under the Credit Agreement. ... The Credit Agreement requires that PSOC comply with certain financial covenants, including a maximum consolidated total leverage ratio test, a maximum consolidated secured leverage ratio test, a maximum consolidated unsecured asset coverage ratio test and a minimum consolidated debt service coverage ratio test.
Proceeds can be used for development, acquisitions, dividends, share repurchases, and general corporate purposes. The facility includes standard REIT-style financial covenants covering leverage ratios, asset coverage, and debt service coverage, providing flexibility while maintaining creditor protections.
Event · Item 1.02 — Termination of a Material Definitive Agreement
Public Storage terminated a material definitive agreement, with details cross-referenced to Item 1.01.
Added in current filing · verify on EDGAR →
The information set forth under Item 1.01 is incorporated by reference into this Item 1.02.
Public Storage disclosed the termination of a material definitive agreement under Item 1.02. The filing incorporates by reference the details from Item 1.01, but Item 1.01 is not included in the provided text. Without access to Item 1.01, the nature of the terminated agreement, the counterparty, the termination terms, and the business impact cannot be determined from this excerpt alone.
Event · Item 7.01 — Regulation FD Disclosure
Item 7.01 — Regulation FD Disclosure filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
the Company issued a press release announcing the transactions described herein, including the Credit Agreement and the establishment of a new $1.0 billion unsecured commercial paper program
Public Storage established a new $1.0 billion unsecured commercial paper program. The program is backstopped by available capacity under the Company's Revolving Credit Facility, providing liquidity support.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
it has closed a new $3.0 billion unsecured revolving credit facility (the “Revolver”), plus a $500 million delayed draw term loan facility (the “Term Loan”), and established a $1.0 billion unsecured commercial paper program (the “Commercial Paper Program”). The Revolver replaces in its entirety the Company’s $1.5 billion revolving credit facility that was scheduled to mature June 12, 2027.
Public Storage replaced its existing $1.5 billion revolving credit facility (maturing June 2027) with a new $3.0 billion unsecured revolving credit facility. The new facility doubles the company's revolving credit capacity, matures June 25, 2030 with extension options through June 25, 2031, and includes a $2 billion accordion feature for additional capacity.
Added in current filing · view on EDGAR →
The Term Loan is available to be drawn in up to four advances on or prior to December 22, 2026 and matures on June 25, 2031. ... Once drawn, the Term Loan will bear interest at SOFR plus 0.700% based on the Company’s current credit ratings.
Public Storage established a new $500 million delayed draw term loan facility that can be drawn in up to four advances through December 22, 2026. The term loan matures June 25, 2031 and will bear interest at SOFR plus 0.700% when drawn.
Added in current filing · view on EDGAR →
established a $1.0 billion unsecured commercial paper program (the “Commercial Paper Program”). ... Commercial paper notes issued under the Commercial Paper Program will rank pari passu with all of Public Storage’s other senior unsecured debt and will be fully and unconditionally guaranteed by Public Storage.
Public Storage established a new $1.0 billion unsecured commercial paper program. Commercial paper notes issued under this program will rank equally with the company's other senior unsecured debt and will be fully guaranteed by Public Storage, providing an additional short-term funding source.
Added in current filing · view on EDGAR →
The successful closing of our new credit facilities and the establishment of our Commercial Paper Program further strengthens Public Storage’s fortress balance sheet, enhances our liquidity, lowers our effective cost of capital, and expands our financial flexibility ... These actions are fully aligned with our PS4.0 strategy and reinforce the capability of our value creation engine — giving us efficient, scalable access to capital to fund accretive acquisitions, development and redevelopment, lending, and other high-return opportunities
Management stated these financing actions strengthen the balance sheet, enhance liquidity, lower cost of capital, and expand financial flexibility. The company intends to use the enhanced capital access to fund acquisitions, development, redevelopment, lending, and other high-return opportunities as part of its PS4.0 strategy.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 29, 2026 · How we verify