SmartStop Self Storage REIT Inc., a publicly registered non-traded real estate investment trust, has been assigned an investment grade credit rating from Kroll Bond Rating Agency Inc. of BBB- with a stable outlook.
KBRA is a credit rating agency registered in the U.S., the European Union, and the United Kingdom.
In connection with the rating announcement, SmartStop reported that its operating partnership has issued $150 million of 4.530 percent senior notes due April 2032. The company intends to use the proceeds from the notes to repay existing secured debt.
The notes issuance will occur in two funding tranches; the first $75 million tranche occurred on April 19, 2022, and the second $75 million tranche will occur on May 25, 2022.
The notes are subject to a series of financial and other covenants substantially similar to its operating partnership’s existing $700 million syndicated credit facility. Both the notes and credit facility are currently secured by a pledge of equity interests, but can become unsecured at the company’s election and upon the achievement of certain security interest termination conditions, the company said.
Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc. served as joint lead placement agents for the notes.
Yesterday, The DI Wire reported that SmartStop Self Storage REIT filed a registration statement with the Securities and Exchange Commission for a proposed underwritten public offering ahead of its New York Stock Exchange listing.
SmartStop is a self-managed REIT with an owned and managed portfolio of 165 properties in 20 states and Ontario, Canada, comprising approximately 112,000 units and 12.8 million rentable square feet.