Public Storage 2002 Annual Report Download - page 22

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12
(2) B. Wayne Hughes owns approximately 20% of the general partner interest of these entities.
(3) B. Wayne Hughes owns approximately 0.5% of the common shares of PS Business Parks, Inc.
(4) B. Wayne Hughes owns approximately 17.9% of the general partnership interest of this entity.
(5) The Hughes Family owns approximately 24.3% of the limited partnership interests of this entity.
(6) The Hughes Family owns approximately 11.9% of the limited partnership interests of this entity.
(7) The Hughes Family owns 20% of the general partner interests and 30.5% of the limited partnership interests of this entity.
(8) The Hughes Family owns 20% of the general partner interests and 15.5% of the limited partnership interests of this entity.
(9) The Hughes Family owns 20% of the general partner interests and 11.4% of the limited partnership interests of this entity.
(10) B. Wayne Hughes is a general partner of this entity, and has no economic interest.
(11) B. Wayne Hughes is a general partner in this entity and owns a 0.02% equity interest.
Prohibited Investments and Activities
The Company's Bylaws prohibit the Company from purchasing properties in which the Company's officers
or directors have an interest, or from selling properties to such persons, unless the transactions are approved by a
majority of the independent directors and are fair to the Company based on an independent appraisal. This Bylaw
provision may be changed with shareholder approval. See ''Limitations on Debt'' below for other restrictions in the
Bylaws.
Borrowings
We have a $200 million revolving line of credit (the “Credit Agreement”) that has a maturity date of
October 31, 2004 and bears an annual interest rate ranging from the London Interbank Offered Rate (“LIBOR”) plus
0.45% to LIBOR plus 1.50% depending on our credit ratings (currently 0.45%). In addition, we are required to pay
a quarterly commitment fee ranging from 0.20% per annum to 0.30% per annum depending on our credit ratings
(currently the fee is 0.20% per annum). At December 31, 2002, we had no borrowings on our line of credit. At
March 23, 2003, there were no borrowings on our line of credit.
The Credit Agreement includes various covenants, the more significant of which require us to (i) maintain a
balance sheet leverage ratio of less than 0.50 to 1.00, (ii) maintain certain quarterly interest and fixed-charge
coverage ratios (as defined) of not less than 2.50 to 1.0 and 1.75 to 1.0, respectively, and (iii) maintain a minimum
total shareholders’ equity (as defined). In addition, we are limited in our ability to incur additional borrowings (we
are required to maintain unencumbered assets with an aggregate book value equal to or greater than two times our
unsecured recourse debt). We were in compliance with all the covenants of the Credit Agreement at December 31,
2002.
As of December 31, 2002, we had notes payable of approximately $115.9 million. See Notes 7 and 8 to the
consolidated financial statements for a summary of the Company’s borrowings at December 31, 2002.
Subject to a limitation on unsecured borrowings in the Company's Bylaws (described below), we have
broad powers to borrow in furtherance of the Company's objectives. We have incurred in the past, and may incur in
the future, both short-term and long-term indebtedness to increase our funds available for investment in real estate,
capital expenditures and distributions.