Shurgard Storage Centers has closed on a three-year, $350 million senior unsecured revolver and a six-month, $150 million term loan, both with one-year extension options. Dev Goshe, executive v.p. and cfo, of the Seattle-based real estate investment trust, said the proceeds would refinance the company's existing unsecured credit facility due to mature on Feb. 26, and provide working capital needs, which could be for acquisitions.
Banc of America Securities is the admin agent and led the self-storage company's previous facility. Citicorp North America is syndication agent. Goshe said the two banks were picked because of the "long standing relationships that we have and have had with these companies."
The deal was oversubscribed and several European banks joined the syndicate. Royal Bank of Scotland, Société Générale and KBC Bank were newcomers into the group, joining Commerzbank, LaSalle Bank and Keybank, which are the co-documentation agents. The Bank of Nova Scotia and RBS are co-senior managing agents and KBC and PNC Bank are co-managing agents.
The revolver carries pricing of LIBOR plus 70 basis points in addition to a 20 basis point fee. The term loan is priced at LIBOR plus 90 basis points. Goshe said he could not discuss any future acquisitions but said the company "is looking at possible acquisitions all the time, but only do it when it makes sense." He said the company acquires individual facilities and portfolios and has also built facilities that the company operates.