SmartStop Self Storage REIT Enters Material Agreement

TL;DR

SmartStop REIT just signed a big deal, creating new financial obligations. Keep an eye on this.

AI Summary

On November 19, 2024, SmartStop Self Storage REIT, Inc. entered into a material definitive agreement. This agreement involves the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement for the registrant. The filing also includes financial statements and exhibits related to this event.

Why It Matters

This filing indicates a significant new financial commitment or arrangement for SmartStop Self Storage REIT, which could impact its financial obligations and future operations.

Risk Assessment

Risk Level: medium — Entering into new material definitive agreements and financial obligations inherently carries risks related to execution, financial performance, and market conditions.

Key Numbers

• 000-55617 — SEC File Number (Identifies the specific SEC filing for SmartStop Self Storage REIT, Inc.)
• 46-1722812 — IRS Employer Identification No. (Tax identification number for the company.)

Key Players & Entities

• SmartStop Self Storage REIT, Inc. (company) — Registrant
• November 19, 2024 (date) — Date of earliest event reported
• Maryland (jurisdiction) — State of incorporation
• 10 Terrace Road, Ladera Ranch, California 92694 (address) — Principal executive offices
• Strategic Storage Trust II, Inc. (company) — Former company name

FAQ

Key Financial Figures

• $35 m — tment under the Acquisition Facility is $35 million, which may be increased by the Bo
• $175 million — wer up to a maximum total commitment of $175 million. Upon the closing of the Acquisition Fa
• $15 m — wn an aggregate amount of approximately $15 million, which was used to fund the acqui
• $75 million — under any non-recourse debt of at least $75 million. The Acquisition Facility is initiall

Filing Documents

• ck0001585389-20241119.htm (8-K) — 53KB
• ck0001585389-ex10_1.htm (EX-10.1) — 978KB
• 0000950170-24-130463.txt ( ) — 1289KB
• ck0001585389-20241119.xsd (EX-101.SCH) — 25KB
• ck0001585389-20241119_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On November 19, 2024, SmartStop Self Storage REIT, Inc. (the "Company"), through its operating partnership (the "Borrower"), entered into a credit agreement with KeyBank, National Association, as administrative agent ("KeyBank"), and KeyBanc Capital Markets, Inc. as book runner and lead arranger, and certain other lenders (the "Lenders") that may become party thereto (the "Acquisition Facility"). The initial commitment under the Acquisition Facility is $35 million, which may be increased by the Borrower up to a maximum total commitment of $175 million. Upon the closing of the Acquisition Facility, the Borrower immediately drew down an aggregate amount of approximately $15 million, which was used to fund the acquisition of a self storage facility. The Borrower intends to use the proceeds of the Acquisition Facility to fund future self storage facility acquisitions. As the Borrower makes draw requests under the Acquisition Facility for such future acquisitions, each subsidiary of the Company that owns such self storage facility will become a Subsidiary Guarantor (defined below) under the Acquisition Facility. The maturity date of the Acquisition Facility is November 19, 2025, and includes a six-month extension option, subject to the payment of an extension fee of 0.20% on the aggregate amount of the then-outstanding commitments for such extension, and it may be prepaid or terminated at any time without penalty; provided, however, that the Lenders shall be indemnified for certain breakage costs. Amounts borrowed under the Acquisition Facility bear interest based on the type of borrowing (either Base Rate Loans, Daily Simple SOFR Loans, or Term SOFR Loans, each as defined in the Acquisition Facility). Base Rate Loans bear interest at the lesser of (x) the Base Rate (as defined in the Acquisition Facility) plus the applicable rate, or (y) the maximum rate. Daily Simple SOFR Loans bear interest at the lesser of

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. 10.1 Credit Agreement, dated November 19, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) Signature(s) 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. SMARTSTOP SELF STORAGE REIT, Inc. Date: November 25, 2024 By: /s/ James R. Barry James R. Barry Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR