CubeSmart (CUBE) expands unsecured revolver to $1B and extends maturity to 2030
Rhea-AI Filing Summary
CubeSmart and its operating partnership entered into a Third Amended and Restated Credit Agreement that provides a $1 billion unsecured revolving credit facility maturing on June 24, 2030. This replaces their prior Second Amended and Restated Credit Facility, which had an $850 million unsecured revolver.
At current unsecured debt credit ratings and leverage levels, borrowings under the new revolver are priced at 0.775% over SOFR plus a 0.15% facility fee, with no SOFR floor. Initial advances under the new facility were used to repay all amounts outstanding under the prior facility. The agreement includes customary covenants, leverage and fixed charge coverage tests, and standard events of default, and both CubeSmart and CubeSmart, L.P. are jointly and severally obligated.
Positive
- None.
Negative
- None.
8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revolving credit facility size: $1 billion unsecured revolver
Prior revolver size: $850 million unsecured revolver
Interest margin over SOFR: 0.775% over SOFR
+3 more
6 metrics
Revolving credit facility size
$1 billion unsecured revolver
Third Amended and Restated Credit Facility
Prior revolver size
$850 million unsecured revolver
Second Amended and Restated Credit Facility as of June 23, 2026
Interest margin over SOFR
0.775% over SOFR
Pricing at current unsecured debt ratings and leverage
Facility fee
0.15%
Facility fee on Third Amended Revolver
Maturity date
June 24, 2030
Third Amended Revolver maturity
Prior agreement date
October 26, 2022
Second Amended and Restated Credit Agreement date
Key Terms
Third Amended and Restated Credit Facility, unsecured revolving facility, SOFR, fixed charge coverage ratio tests, +1 more
5 terms
Third Amended and Restated Credit Facility financial
"entered into a Third Amended and Restated Credit Agreement (the “Third Amended and Restated Credit Facility”)"
unsecured revolving facility financial
"comprised of a $1 billion unsecured revolving facility (the “Third Amended Revolver”)"
SOFR financial
"priced at 0.775% over the applicable Secured Overnight Financing Rate (the “SOFR”)"
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
fixed charge coverage ratio tests financial
"require us to comply with leverage and fixed charge coverage ratio tests"
event of default financial
"The lenders may accelerate amounts outstanding ... upon the occurrence of an event of default"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
FAQ
What did CubeSmart (CUBE) announce regarding its credit facility?
CubeSmart entered into a Third Amended and Restated Credit Agreement providing a $1 billion unsecured revolving credit facility. This new agreement replaces the prior $850 million unsecured revolver and extends access to revolving credit under updated terms and covenants.
How large is CubeSmart’s new revolving credit facility and when does it mature?
The new unsecured revolving credit facility for CubeSmart totals $1 billion and matures on June 24, 2030. It is documented in the Third Amended and Restated Credit Facility, which amends and restates the company’s previous revolving credit agreement.
How is CubeSmart’s new revolving credit facility priced?
At CubeSmart’s current unsecured debt credit ratings and leverage levels, amounts drawn are priced at 0.775% over SOFR plus a 0.15% facility fee. The facility has no SOFR floor, so pricing tracks the Secured Overnight Financing Rate determined by the Federal Reserve Bank of New York.
What did CubeSmart do with the initial advances under the new credit facility?
CubeSmart used initial advances under the Third Amended and Restated Credit Facility to repay all amounts drawn under its prior Second Amended and Restated Credit Facility. This effectively refinanced the existing borrowings into the larger, updated $1 billion revolving facility.
What covenants apply under CubeSmart’s Third Amended and Restated Credit Facility?
The new credit facility includes customary affirmative and negative covenants and financial covenants. These require CubeSmart to comply with leverage and fixed charge coverage ratio tests, and permit lenders to accelerate amounts outstanding upon events of default such as payment failures or bankruptcy filings.
Who are the key parties to CubeSmart’s new credit agreement?
The Third Amended and Restated Credit Agreement is among CubeSmart, CubeSmart, L.P., the lenders referred to in the agreement, and Wells Fargo Bank, National Association. Wells Fargo acts as administrative agent for the lenders under the $1 billion unsecured revolving facility.
AI-generated analysis. How Rhea-AI works. Not financial advice.
