In a recent SEC filing, the company says it will use $64.2 million of the proceeds to repay the outstanding balance under its revolving credit facility; $130.8 million as cash consideration for pending acquisitions; $40.2 million to repay outstanding mortgage loans secured by 37 of its facilities; and, the remainder for acquisition and development of additional self-storage facilities, capital improvements and general corporate purposes.

All of the shares were acquired by the underwriters of the offering. Lehman Brothers Inc. acted as sole book-running manager. Co-managers included Citigroup Global Markets Inc., Wachovia Capital Markets LLC, A.G. Edwards & Sons Inc., Raymond James & Associates Inc., Banc of America Securities LLC, KeyBanc Capital Markets and Harris Nesbitt Corp. Prior to the offering, about 90% of the company's outstanding shares were held by either institutions or insiders.

Lehman and its affiliates are lenders under six of the company's existing fixed rate multi-facility mortgage loans. Three underwriters also are currently lenders under the company's $150-million secured revolving credit facility, which means they will receive a portion of the net proceeds from the offering through the anticipated repayment of indebtedness under the credit facility.

In late July, it closed on 3.6 million sf from National Self Storage and the Schomac Group Inc. for $212 million. Between the time that deal was announced and closed, U-Store-It spent another $77 million on an additional 1.3 million sf. The company now owns upward of 18.8 million sf in 309 facilities in 25 states.

In the second quarter, U-Store-It posted funds from operations of $10.6 million or 28 cents per share. Net Income was $2.2 million, or 6 cents per share, on revenue of $33.8 million. In the year earlier period, its predecessor company posted a loss of $1.2 million on revenue of $21.2 million.

Instant Insights /

U-Store-It Completes $400M Offering

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