SmartStop Self Storage closes CAD $200M bond offering

SmartStop Self Storage REIT, Inc. successfully concluded a CAD $200 million senior unsecured notes offering on Tuesday, as reported in a press release. The Series C Senior Unsecured Notes, issued by SmartStop OP, L.P., will mature on February 18, 2031, with an interest rate of about 4.317% per annum. Semiannual cash payments commenced on February 18, 2027.

Morningstar DBRS has assigned a BBB rating with a Stable Outlook to the notes. The company utilized the net proceeds to settle existing debt, repay amounts from its revolving credit facility, and allocate funds to general corporate purposes. H. Michael Schwartz, Chairman and CEO of SmartStop, stated that these bonds have substantially completed the refinance of 2026 debt maturities and significantly reduced the balance on the senior revolver while strategically lengthening the debt maturities.

This is the company's third senior unsecured Canadian bond offering. SmartStop manages self-storage facilities in the United States and Canada, with over 15 years of experience in the Greater Toronto Area. The company's portfolio comprises more than 460 operating properties spread across 36 states, the District of Columbia, and Canada, encompassing over 275,000 units and more than 35 million rentable square feet.

BMO Capital Markets and National Bank of Canada Capital Markets were the bookrunners for the offering, while Scotiabank and RBC Capital Markets served as co-managers. As of Tuesday, SmartStop operates a total of 53 self-storage properties across four Canadian provinces.