Sovran Self Storage Unveils Public Offering Of Common Stock

Sovran Self Storage, Inc. SSS, a self storage real estate investment trust (REIT) firm, revealed that it commenced a six million public offering of its common stock. According to the company, it has also granted a 30-day option to the underwriters to acquire a maximum of 900,000 additional shares of common stock.

Sovran Self Storage said that net proceeds from the offering would be used to partly fund the recently announced acquisition of LifeStorage, LP ("LifeStorage") for an aggregate price of approximately $1.3 billion. The company indicated it would own an additional 84 stores in nine separate states with a total of 6.5 million square feet upon the completion of the acquisition.

The company said the pending acquisition is subject to the satisfaction of customary closing conditions. Sovran expects the acquisition to close in the third quarter of the current year. However, the company clarified that there can be no assurances that these conditions will be satisfied or that the acquisition would close on the terms described, or at all.

The join book-running managers to the public offering were Wells Fargo Securities, Citigroup and SunTrust Robinson Humphrey.

Shares of the company traded 4.29 percent down on Thursday.