Sovran Arranges $300MM in Financing

Sovran Self Storage, Buffalo, N.Y., has entered into financing arrangements that will give the self-storage real estate investment trust access to up to $300 million in senior unsecured debt.Initial funding of $209 million was used to repay a part of Sovran's term and line of credit loans, the REIT said. The rest of the funding will be used to fund acquisitions and for general corporate purposes. Fleet Securities is the lead arranger on the financing, which includes a $100 million private placement of 10-year notes, a $100 million five-year term loan, and a $75 million line of credit (which can be expanded to $100 million). Interest is fixed at 6.26% on $80 million of the 10-year term notes, and at the London interbank offered rate plus 1.5% for the remaining $20 million. The $100 million five-year term note bears interest at LIBOR plus 1.5%, and the revolving credit facility carries interest at LIBOR plus 1.375%.