StorageVault Completes $275 Million Acquisition of 38 Store Real Storage Portfolio
TORONTO, April 15, 2019 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that, further to its February 6, 2019 and April 1, 2019 news releases, it has completed the acquisition of the Real Storage portfolio (the “Real Storage Acquisition”). The Real Storage Acquisition is an arm’s length transaction.
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, 1 in British Columbia and 1 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 has entered into a $320 million credit agreement for a 3 year term (the “Credit Facility”). The Bank of Nova Scotia (“Scotiabank”) and TD Securities Inc. (“TD”) acted as Co-Lead Arrangers and Joint Bookrunners for the Credit Facility, with Scotiabank and The Toronto-Dominion Bank each committing $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, Chief Financial Officer, stated, “We are very happy with the credit agreement as it provides us with certainty and continues to reduce our cost of debt.”
ABOUT STORAGEVAULT CANADA INC.
StorageVault owns and operates 199 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. StorageVault owns 145 of these locations plus over 4,600 portable storage units representing over 7.8 million rentable square feet.
For further information, contact Mr. Steven Scott or Mr. Iqbal Khan:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.