Toronto-based StorageVault has completed the acquisition of the Real Storage portfolio.
Real Storage is one of Canada’s largest self-storage portfolios and complements StorageVault’s current operating platform. Real Storage operates 25 stores in Ontario, 11 in Alberta, one in British Columbia and one in Manitoba. With the acquisition StorageVault will own and manage 199 stores across Canada.
The purchase price of $275 million, subject to customary adjustments, was satisfied with funds on hand and mortgage financing.
In conjunction with the closing, StorageVault entered into a $320 million credit agreement for a three-year term. The Bank of Nova Scotia and TD Securities acted as co-lead arrangers and joint bookrunners for the credit facility. Scotiabank and TD Bank each committed $160 million. Scotiabank will be the Administrative Agent for the credit facility.
This credit facility replaces the remaining $83 million of outstanding indebtedness on the $270 million revolving credit facility announced on August 1, 2017.
StorageVault has also entered into an interest rate swap transaction that will provide a fixed rate on $300 million of its senior secured debt until April 2026, with Scotiabank acting as lead hedge arranger.
Iqbal Khan, CFO, stated, “We are very happy with the credit agreement as it provides us with certainty and continues to reduce our cost of debt.”
