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National Storage REIT ( (AU:NSR) ) has issued an update.
National Storage Finance and its guarantors have notified holders of their A$300 million guaranteed exchangeable notes that the proposed acquisition of National Storage REIT by a Brookfield- and GIC-backed consortium, to be implemented via schemes of arrangement, will constitute a change of control if the schemes become effective. This will temporarily reduce the exchange price of the notes and create a narrow window for noteholders to convert into stapled securities in order to participate in the cash scheme consideration alongside equity investors.
The issuer warns that noteholders who do not exercise their exchange rights before the scheme record date are expected to receive a cash alternative amount instead of stapled securities, with the amount to be determined by an independent financial adviser under the note terms. In addition, if at least 85% of the notes are exchanged, purchased or redeemed, the issuer plans to exercise its optional redemption right to buy back the remaining notes at par plus accrued interest, potentially accelerating the wind-up of this funding instrument post-transaction.
The most recent analyst rating on (AU:NSR) stock is a Hold with a A$2.80 price target. To see the full list of analyst forecasts on National Storage REIT stock, see the AU:NSR Stock Forecast page.
More about National Storage REIT
National Storage REIT is an Australian listed real estate investment trust focused on self-storage facilities, with operations structured through entities including National Storage Finance Pty Ltd, National Storage Holdings Limited and National Storage Financial Services Limited. It funds part of its activities through A$300 million guaranteed exchangeable notes due 2029, providing investors exposure linked to its stapled securities.
Average Trading Volume: 9,701,367
Technical Sentiment Signal: Buy
Current Market Cap: A$3.89B
Learn more about NSR stock on TipRanks’ Stock Analysis page.