PSA Prices $875M Senior Notes at 4.375% & 5.000% Yields

Rhea-AI Filing Summary

Public Storage Operating Company, guaranteed by Public Storage (PSA), priced two tranches of senior unsecured notes on June 26, 2025:

• $475 million 4.375% notes due July 1, 2030, re-offered at 99.707% to yield 4.441% (T + 65 bps).
• $400 million 5.000% notes due July 1, 2035, re-offered at 99.557% to yield 5.057% (T + 80 bps).

Both series settle on June 30, 2025 (T+2), pay semi-annual interest each January 1 and July 1 beginning January 1, 2026, and carry make-whole call provisions until one month (2030s) or three months (2035s) prior to maturity, after which they are callable at par. Underwriting discounts are 0.35% for the 2030 notes and 0.45% for the 2035 notes. The offering was led by BofA Securities and Wells Fargo Securities, with multiple major banks acting as joint book-runners and co-managers.

Insights

Corporate Bond Analyst

TL;DR: PSA raises $875 M at modest spreads, locking fixed rates through 2035; leverage rises but pricing appears market-consistent.

Pricing at T+65 bps (5-yr) and T+80 bps (10-yr) places the deal inside typical BBB+ REIT curves, suggesting healthy demand for PSA credit. Coupons below the 5-yr and 10-yr benchmark Treasury yields plus spreads indicate PSA converts to all-in yields of 4.44% and 5.06%, securing long-dated fixed funding ahead of potential rate volatility. Issuance increases gross debt by $875 M; net leverage impact is unknown absent proceeds use disclosure. The make-whole call schedules offer protection to investors yet give PSA flexibility to refinance after 2029/2035. Overall, the transaction is routine financing with neutral-to-slightly positive credit signal due to competitive pricing.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Public Storage (PSA) issuing in the June 2025 FWP?

$475 M 4.375% notes due 2030 and $400 M 5.000% notes due 2035.

When do the new PSA senior notes mature?

July 1, 2030 for the 4.375% notes and July 1, 2035 for the 5.000% notes.

What are the reoffer yields and spreads to Treasury?

4.441% (T+65 bps) for 2030 notes; 5.057% (T+80 bps) for 2035 notes.

When is the settlement date for the PSA bond offering?

June 30, 2025 (T+2).

Are the notes callable?

Yes—make-whole call until 6/1/2030 (2030s) or 4/1/2035 (2035s), then callable at par.

Who are the joint book-running managers for PSA's offering?

BofA Securities, Wells Fargo Securities, BNP Paribas, Goldman Sachs, J.P. Morgan, Scotia Capital and SMBC Nikko.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/26/2025 - 05:12 PM Learn about SEC filing dates

Issuer Free Writing Prospectus

Filed Pursuant to Rule 433

Registration Statement No. 333-283556 and 333-283556-01

June 26, 2025

PUBLIC STORAGE

$475,000,000 4.375% Senior Notes due 2030 (the “2030 Notes”)

$400,000,000 5.000% Senior Notes due 2035 (the “2035 Notes”)

Final Term Sheet

 

Issuer:	  	Public Storage Operating Company
Guarantor:	  	Public Storage (PSA)
Security:	  	4.375% Senior Notes due 2030
	  	5.000% Senior Notes due 2035
Trade Date:	  	June 26, 2025
Settlement Date:	  	June 30, 2025 (T+2)
Aggregate Principal Amount:	  	2030 Notes: $475,000,000
	  	2035 Notes: $400,000,000
Maturity Date:	  	2030 Notes: July 1, 2030
	  	2035 Notes: July 1, 2035
Coupon:	  	2030 Notes: 4.375% per annum
	  	2035 Notes: 5.000% per annum
Benchmark Treasury:	  	2030 Notes: 4.000% due May 31, 2030
	  	2035 Notes: 4.250% due May 15, 2035
Benchmark Treasury Price / Yield:	  	2030 Notes: 100-29 3/4 / 3.791%
	  	2035 Notes: 99-30 / 4.257%
Spread to Benchmark Treasury:	  	2030 Notes: T+ 65 basis points
	  	2035 Notes: T+ 80 basis points
Reoffer Yield:	  	2030 Notes: 4.441%
	  	2035 Notes: 5.057%
Price to Public:	  	2030 Notes: 99.707% of principal amount
	  	2035 Notes: 99.557% of principal amount
Underwriting Discount:	  	2030 Notes: 0.35% of principal amount
	  	2035 Notes: 0.45% of principal amount

Interest Payment Dates:	  	2030 Notes: January 1 and July 1 of each year, commencing on January 1, 2026
	  	2035 Notes: January 1 and July 1 of each year, commencing on January 1, 2026
Record Dates:	  	2030 Notes: December 15 and June 15
	  	2035 Notes: December 15 and June 15
Redemption Provision:	  	2030 Notes: Make-whole call prior to June 1, 2030 (one month prior to the maturity date of the 2030 Notes) based on U.S. Treasury +10 basis points or at par on or after June 1, 2030
	  	2035 Notes: Make-whole call prior to April 1, 2035 (three months prior to the maturity date of the 2035 Notes) based on U.S. Treasury +15 basis points or at par on or after April 1, 2035
Joint Book-Running Managers:	  	BofA Securities, Inc.
	  	Wells Fargo Securities, LLC
	  	BNP Paribas Securities Corp.
	  	Goldman Sachs & Co. LLC
	  	J.P. Morgan Securities LLC
	  	Scotia Capital (USA) Inc.
	  	SMBC Nikko Securities America, Inc.
Co-Managers:	  	Morgan Stanley & Co. LLC
	  	TD Securities (USA) LLC
	  	UBS Securities LLC
ISIN Number:	  	2030 Notes: US74464AAC53
	  	2035 Notes: US74464AAD37
CUSIP Number:	  	2030 Notes: 74464A AC5
	  	2035 Notes: 74464A AD3

The issuer has filed a registration statement (including a base prospectus) and prospectus supplement with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read the base prospectus in that registration statement, the prospectus supplement, and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the base prospectus and the prospectus supplement related thereto if you request it by contacting BofA Securities, Inc. toll-free at 1-800-294-1322 or Wells Fargo Securities, LLC toll-free at 1-800-645-3751.

Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers or other notices were automatically generated as a result of this communication being sent via Bloomberg or another email system.