SmartStop Closes C$200 Million Canadian Bond Offering

SmartStop Self Storage REIT Inc. has raised C$200 million through its third senior unsecured bond offering in Canada, as the self-storage real estate investment trust looks to extend its debt maturities and strengthen its balance sheet.

The five-year Series C Senior Unsecured Notes, issued through SmartStop’s operating partnership, SmartStop OP L.P., mature Feb. 18, 2031, and carry an annual interest rate of approximately 4.317%. Interest will be paid semiannually beginning Feb. 18, 2027.

The notes received a BBB rating with a stable outlook from Morningstar DBRS.

SmartStop said it will use the proceeds to repay existing debt, including borrowings under its revolving credit facility, as well as for general corporate purposes. The company said the transaction substantially completes the refinancing of its 2026 debt maturities and reduces the balance outstanding on its senior revolving credit facility.

“We are thrilled to opportunistically complete our third Maple Bond, leveraging our Canadian exposure to raise capital at an attractive rate,” said H. Michael Schwartz, SmartStop’s chairman and chief executive officer. “With these bonds, we have substantially completed the refinance of our 2026 debt maturities, materially termed out the balance on our senior revolver, while strategically laddering out our debt maturities.”

The Maple bond, a Canadian-dollar debt security issued by a non-Canadian borrower, underscores SmartStop’s longstanding presence in the Canadian market. The company has operated in the Greater Toronto Area for more than 15 years.

BMO Capital Markets and National Bank of Canada Capital Markets served as bookrunners for the offering, with Scotiabank and RBC Capital Markets acting as co-managers.

McMillan LLP served as Canadian counsel to SmartStop, while Nelson Mullins Riley & Scarborough LLP represented the issuer in the United States and Venable LLP served as Maryland counsel. Davies Ward Phillips & Vineberg LLP represented the dealers.

The notes were not registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States unless registered or covered by an applicable exemption.