Extra Space Storage Inc. Reports New Material Agreement & Financial Obligation

TL;DR

**EXR just took on new debt or a major agreement; watch for details on its impact.**

AI Summary

Extra Space Storage Inc. filed an 8-K on January 19, 2024, reporting an entry into a material definitive agreement and the creation of a direct financial obligation. This filing indicates that the company has undertaken new financial commitments, which could impact its balance sheet and future cash flows. For investors, this means the company's debt profile or operational agreements have changed, potentially affecting its financial flexibility and profitability, making it crucial to understand the specifics of these new obligations.

Why It Matters

This filing signals new financial commitments for Extra Space Storage Inc., which could alter its debt levels, cash flow, and overall financial health, directly impacting shareholder value.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations without specific dollar amounts or terms, creating uncertainty about the potential impact on the company's financial health.

Analyst Insight

Investors should monitor subsequent filings or press releases from Extra Space Storage Inc. for details on the nature and terms of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess their financial impact.

Key Players & Entities

• Extra Space Storage Inc. (company) — the registrant filing the 8-K
• January 19, 2024 (date) — date of report and earliest event reported
• Maryland (company) — state of incorporation for Extra Space Storage Inc.
• 001-32269 (company) — Commission File Number for Extra Space Storage Inc.
• EXR (company) — trading symbol for Extra Space Storage Inc. Common Stock
• New York Stock Exchange (company) — exchange where EXR Common Stock is registered

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value EXR New York Stock Exchan
• $600,000,000 — eted an underwritten public offering of $600,000,000 aggregate principal amount of its 5.400
• $100.0 million — tstanding principal amount in excess of $100.0 million at final maturity or upon acceleration

Filing Documents

• d698894d8k.htm (8-K) — 40KB
• d698894dex42.htm (EX-4.2) — 257KB
• d698894dex51.htm (EX-5.1) — 18KB
• d698894dex52.htm (EX-5.2) — 15KB
• d698894dex53.htm (EX-5.3) — 16KB
• g698894g0119060623709.jpg (GRAPHIC) — 2KB
• g698894g0119061627612.jpg (GRAPHIC) — 7KB
• g698894g08e96.jpg (GRAPHIC) — 3KB
• g698894g46s45.jpg (GRAPHIC) — 3KB
• g698894g94k55.jpg (GRAPHIC) — 7KB
• 0001193125-24-011229.txt ( ) — 574KB
• exr-20240119.xsd (EX-101.SCH) — 3KB
• exr-20240119_lab.xml (EX-101.LAB) — 18KB
• exr-20240119_pre.xml (EX-101.PRE) — 11KB
• d698894d8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. The information set forth in Item 2.03 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On January 19, 2024, Extra Space Storage LP (the "Issuer"), a Delaware limited partnership and subsidiary of Extra Space Storage Inc. (the "Company"), completed an underwritten public offering of $600,000,000 aggregate principal amount of its 5.400% Senior Notes due 2034 (the "Notes"). The Notes are fully and unconditionally guaranteed (the "Guarantee") by the Company, ESS Holdings Business Trust I, a Massachusetts business trust ("EHBT I"), and ESS Holdings Business Trust II, a Massachusetts business trust ("EHBT II" and, together with EHBT I and the Company, the "Guarantors"). The terms of the Notes are governed by an indenture, dated as of May 11, 2021 (the "Base Indenture"), by and among the Issuer, the Guarantors and Computershare Trust Company, N.A., as successor trustee to Wells Fargo Bank, National Association, as trustee (the "Trustee"), as supplemented by a twelfth supplemental indenture, dated as of January 19, 2024 (the "Twelfth Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), by and among the Issuer, the Guarantors and the Trustee. The Indenture contains various restrictive covenants, including limitations on the ability of the Issuer and its subsidiaries to incur additional indebtedness and requirements to maintain a pool of unencumbered assets. Copies of the Base Indenture and the Twelfth Supplemental Indenture, including the form of Notes and the Guarantee, the terms of which are incorporated herein by reference, are attached as Exhibits 4.1 and 4.2, respectively, to this Current Report on Form 8-K. The public offering price for the Notes was 99.745% of the principal amount thereof. The Notes are the Issuer's senior unsecured obligations and rank equally in right of payment with all of the Issuer's other existing and future senior unsecured indebtedness. However, the Notes are effectively

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 4.1 Indenture, dated as of May 11, 2021, among Extra Space Storage LP, as issuer, Extra Space Storage Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II, as guarantors, and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by Extra Space Storage Inc. on May 11, 2021). 4.2 Twelfth Supplemental Indenture, dated as of January 19, 2024, among Extra Space Storage LP, as issuer, Extra Space Storage Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II, as guarantors, and Computershare Trust Company, N.A., as trustee, including the form of the Notes and the Guarantee. 5.1 Opinion of Latham & Watkins LLP. 5.2 Opinion of Venable LLP. 5.3 Opinion of Verrill Dana LLP. 23.1 Consent of Latham & Watkins LLP (included in Exhibit 5.1). 23.2 Consent of Venable LLP (included in Exhibit 5.2). 23.3 Consent of Verrill Dana LLP (included in Exhibit 5.3). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 3

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EXTRA SPACE STORAGE INC. Date: January 19, 2024 By /s/ Gwyn McNeal Name: Gwyn McNeal Title: Executive Vice President and Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR