Public Storage 8-K

What Happened
Public Storage Operating Company (PSOC), a subsidiary of Public Storage, entered into a Fourth Amended and Restated Credit Agreement on June 25, 2026 with Wells Fargo Bank, N.A., as agent, and other lenders. The agreement provides a $3.0 billion senior unsecured revolving credit facility (revolver) and a $500 million senior unsecured delayed-draw term loan (DDTL). The revolver replaces the Company’s prior $1.5 billion revolver. PSOC’s obligations under the Credit Agreement are guaranteed by Public Storage. Separately, the Company announced a new $1.0 billion unsecured commercial paper program that is backstopped by available capacity under the revolver.

Key Details

• Revolver: $3.0 billion initial capacity, maturity June 25, 2030 (optionally extendable by one year or up to two 6‑month periods subject to fees/conditions).
• DDTL: $500 million, borrowable in up to four advances during the 180‑day draw period after closing, scheduled maturity June 25, 2031.
• Upsize option: Ability to increase commitments or add term loans in aggregate up to an additional $1.5 billion subject to lender commitments and conditions.
• Pricing & fees: Revolver interest at PSOC’s election of SOFR + 0.625%–1.35% (or base rate + 0.00%–0.35%); DDTL at SOFR + 0.675%–1.55% (or base + 0%–0.55%); facility fee on revolver commitments 0.10%–0.30%; 0.10% ticking fee on undrawn DDTL after 90 days.
• Covenants & defaults: Includes customary financial covenants (leverage, secured leverage, unsecured asset coverage, debt service coverage), affirmative/negative covenants and standard events of default. As of June 25, 2026, no amounts were outstanding under the Credit Agreement.

Why It Matters
This transaction materially increases the Company’s committed liquidity versus the prior revolver (from $1.5B to $3.0B plus a $500M DDTL and potential additional capacity), giving Public Storage greater short- and medium-term funding flexibility for development, capital expenditures, refinancing, working capital needs and other corporate purposes (including dividends, acquisitions and share repurchases permitted under the agreement). The attached $1.0B commercial paper program provides a lower-cost short-term funding option, with the revolver serving as backstop. Investors should note interest costs will vary with chosen rate options and Public Storage’s credit rating, and the credit agreement includes financial covenants and events of default that could affect financing flexibility if breached.