Public Storage (NYSE: PSA) boosts $3B revolver, $500M term loan and $1B CP program
Rhea-AI Filing Summary
Public Storage updated its financing arrangements by closing a new $3.0 billion unsecured revolving credit facility and a $500 million unsecured delayed draw term loan through subsidiary Public Storage Operating Company. The new revolver replaces a $1.5 billion facility and matures on June 25, 2030, with extension options.
The term loan can be drawn in up to four advances through 180 days after June 25, 2026 and matures on June 25, 2031. Borrowings are priced off SOFR or a base rate plus ratings-based margins, and the revolver carries a 0.10%–0.30% commitment fee, with a 0.10% ticking fee on undrawn term loan commitments.
The agreement includes leverage and coverage covenants, customary defaults, and allows use of proceeds for development, acquisitions, debt repayment, dividends, and share repurchases. As of June 25, 2026, there were no borrowings outstanding. The company also established a $1.0 billion unsecured commercial paper program backed by revolver capacity.
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Insights
Public Storage significantly expands committed liquidity while modestly lowering borrowing spreads.
Public Storage now has a $3.0 billion unsecured revolver and a $500 million delayed draw term loan, replacing a prior $1.5 billion revolver. This meaningfully increases committed funding for development, acquisitions, and general corporate purposes without requiring immediate balance sheet growth.
Pricing is tied to credit ratings, with SOFR-based margins that are lower than the prior facility, plus commitment and ticking fees that compensate lenders on undrawn amounts. Financial covenants around leverage, secured debt, unsecured asset coverage, and debt service preserve the company’s investment-grade profile.
The new $1.0 billion unsecured commercial paper program, backed by revolver capacity, adds short-term funding flexibility alongside longer-dated bank commitments through 2030–2031. Actual impact will depend on how much of these lines and the commercial paper program are drawn in future periods.
8-K Event Classification
Key Figures
Key Terms
delayed draw term loan facility financial
commercial paper program financial
SOFR rate financial
ticking fee financial
consolidated total leverage ratio test financial
events of default financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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| Item 1.01 | Entry Into a Material Definitive Agreement |
On June 25, 2026 (the “Closing Date”), Public Storage Operating Company (“PSOC”), a subsidiary of Public Storage (the “Company”), entered into a Fourth Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as Agent, and the other lenders from time to time party thereto. The Credit Agreement provides PSOC with a $3.0 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) and a $500 million senior unsecured delayed draw term loan facility (the “DDTL Facility” and, together with the Revolving Credit Facility, the “Facilities”). The Revolving Credit Facility replaces in its entirety the $1.5 billion senior unsecured revolving credit facility provided for under the Company’s Third Amended and Restated Credit Agreement dated June 12, 2023. PSOC’s obligations under the Credit Agreement are guaranteed by the Company.
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.
Under the terms of the Credit Agreement, PSOC has the ability to borrow up to $3.0 billion under the Revolving Credit Facility and $500 million under the DDTL Facility, with an option to increase commitments under the Revolving Credit Facility or incur one or more term loans at any time in an aggregate amount of up to an additional $1.5 billion, subject to obtaining additional commitments from lenders and the satisfaction of certain customary conditions. The Revolving Credit Facility includes borrowing capacity for letters of credit and also provides optionality for borrowings in certain foreign currencies.
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. In addition, at PSOC’s election and subject to the agreement of one or more lenders under the Credit Facility, the interest rate on any loan may also be determined by competitive bid process. PSOC is also required to pay a facility fee on the aggregate commitments under the Revolving Credit Facility (whether or not utilized) at a rate per annum ranging from 0.10% to 0.30%, depending on the Company’s credit rating in effect from time to time. Beginning 90 days after the Closing Date and until the termination or expiration of the commitments under the DDTL Facility, PSOC is required to pay a ticking fee on the undrawn portion of the commitments in respect of the DDTL Facility at a rate per annum of 0.10% .
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. The Credit Agreement also contains customary representations, affirmative covenants and negative covenants, including restrictions on the ability of the Company and its subsidiaries to merge or sell, lease or otherwise transfer all or substantially all assets.
The Credit Agreement also contains customary events of default (subject to certain grace periods), including nonpayment of principal, interest, fees or other amounts when due; material inaccuracies of representations or warranties; cross-default to other material indebtedness, the occurrence of certain bankruptcy events; undischarged material judgments; certain ERISA events; and certain changes of control. Upon the occurrence of an event of default, any outstanding loans may be accelerated and/or the revolving commitments of the lenders may be terminated.
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. As of June 25, 2026, PSOC had no outstanding borrowings under the Credit Agreement.
In the ordinary course of their respective businesses, many of the lenders or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, advisory, lending and/or commercial banking or other financial services for the Company and its subsidiaries for which they received, or may receive, customary fees and reimbursement of expenses.
The foregoing description is qualified in its entirety by reference to the Credit Agreement, filed as Exhibit 10.1 hereto and incorporated herein by reference.
| Item 1.02 | Termination of a Material Definitive Agreement |
The information set forth under Item 1.01 is incorporated by reference into this Item 1.02.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Entry Sheet Arrangement of a Registrant |
The information set forth under Item 1.01 is incorporated by reference into this Item 2.03.
| Item 7.01 | Regulation FD Disclosure. |
On June 25, 2026, 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, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The commercial paper program is backstopped by available capacity under the Company’s Revolving Credit Facility.
Commercial paper notes to be offered under the commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The information contained in or incorporated by reference into this Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the commercial paper program, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The information in this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section. The information in this Item 7.01 shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit |
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| 10.1* | Fourth Amended and Restated Credit Agreement, dated as of June 25, 2026, by and among Public Storage Operating Company, the financial institutions party thereto and Wells Fargo Bank, National Association, as Agent. | |
| 99.1 | Press release dated June 25, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
| * | Public Storage has omitted certain schedules and exhibits pursuant to Item 601(a) of Regulation S-K and shall furnish supplementally to the SEC copies of any of the omitted schedules and exhibits upon request by the SEC. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PUBLIC STORAGE | ||||||
| By: |
/s/ Joseph D. Fisher | |||||
| Joseph D. Fisher | ||||||
| Date: June 25, 2026 |
President and Chief Financial Officer | |||||
Exhibit 99.1
News Release
Public Storage announces upsized $3.0 billion Revolving Credit Facility, new $500 million Term Loan, and Establishes $1.0 billion Commercial Paper Program
FRISCO, Texas, June 25, 2026 – Public Storage (NYSE:PSA) (“Public Storage” or the “Company”) announced today that 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.
“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,” said Joe Fisher, President and Chief Financial Officer of Public Storage. “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, while continuing to support the long-term per share growth of the business. We appreciate the continued confidence and support of our banking partners.”
The Revolver has total commitments of $3.0 billion available for borrowings in US dollars and certain foreign currencies and matures on June 25, 2030, with extension options available through June 25, 2031. 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. The credit facility documentation also includes an accordion feature that permits Public Storage to increase total commitments under the Revolver or incur additional term loans by up to $2 billion, subject to obtaining additional lender commitments. Borrowings under the Revolver bear interest at SOFR plus 0.650% based on the Company’s current credit ratings, a reduction of 15 basis points as compared to the prior facility. Once drawn, the Term Loan will bear interest at SOFR plus 0.700% based on the Company’s current credit ratings. The spread applicable to both the Revolver and the Term Loan may increase or decrease in the future based on any change to Public Storage’s credit ratings.
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.
Wells Fargo Bank, National Association is serving as Agent for the Credit Facility. Wells Fargo Securities, LLC, BofA Securities, Inc., and JPMorgan Chase Bank, N.A. acted as joint bookrunners.
Commercial paper notes to be offered under the commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The information contained in this news release shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the commercial paper program, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Public Storage
Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At March 31, 2026, we: (i) owned and/or operated 3,546 self-storage facilities located in 40 states with approximately 259 million net rentable square feet in the United States and (ii) owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 333 self-storage facilities located in seven Western European countries with approximately 19 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Frisco, Texas.
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