SmartStop Issues CAD$500M in Senior Notes

Proceeds from the bond issuance will fund debt repayment, new acquisitions in Alberta, and corporate growth initiatives.

June 20, 2025

SmartStop Raises Capital to Fund Growth and Reduce Leverage

SmartStop Self Storage REIT has taken another step toward scaling its platform across North America. On June 16, the company completed a CAD$500 million private placement of senior unsecured notes due in 2028. The proceeds are already in motion—funding repayments, reducing leverage, and supporting growth plans in Canada.

The notes, issued through SmartStop’s operating partnership, carry a 3.907% interest rate and are rated BBB (Stable) by Morningstar DBRS. After hedging, the effective rate drops to roughly 3.85%. The offering was marketed to institutional investors in Canada under local exemptions and structured to align with SmartStop’s existing credit facility and long-term debt.

With the transaction closed, SmartStop used part of the capital to fully retire its 2027 NBC Loan, covering:

• Accrued interest


• Legal costs


• Early termination of a related swap agreement

The remaining proceeds are earmarked for paying down the company’s credit facility, funding acquisitions, and general corporate needs.

Structuring, Protections, and Strategic Use of Capital

The debt structure comes with standard protections. SmartStop has the option to redeem the notes early at the greater of par or a price based on Canadian government bond yields. Investors are also entitled to a repurchase offer at a premium if there’s a change of control. These notes are backed by full guarantees from the company and its subsidiaries with existing credit obligations—ensuring equal treatment across SmartStop’s capital stack.

Expansion Plans in Motion

Alongside this raise, SmartStop is actively growing its footprint. The company expects to close a US$108 million portfolio in Houston this month and is also under contract to acquire five properties in Alberta for approximately CAD$97 million.

This financing gives SmartStop room to maneuver. It reduces near-term refinancing risk and supports execution on near-term acquisitions. With capital in place and projects lined up, the company is positioned to move quickly as new opportunities arise.