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PUBLIC STORAGE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
F-21
7. Revolving line of credit
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, 2003, we had no borrowings on our
line of credit.
The Credit Agreement includes various covenants, the more significant of which requires 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, 2003.
8. Notes payable
Notes payable at December 31, 2003 and 2002 consist of the following:
2003 2002
Carrying
amount
Fair value
Carrying
amount
Fair value
(Amounts in thousands)
Unsecured senior notes:
7.47% note due January 2004 ..................................................... $ 14,600 $ 14,600 $ 29,300 $ 29,300
7.66% note due January 2007 ..................................................... 44,800 44,800 56,000 56,000
7.08% note due November 2003................................................. - - 10,000 10,000
Mortgage notes payable:
10.55% mortgage notes secured by real estate facilities,
principal and interest payable monthly, due August 2004 .... 14,863
15,266
18,167
19,409
7.134% to 8.75% mortgage notes secured by real estate
facilities, principal and interest payable monthly, due at
varying dates between May 2004 and September 2028 ........ 1,767
1,767
2,400
2,400
Total notes payable ......................................................... $ 76,030 $ 76,433 $ 115,867 $ 117,109
All of our notes payable are fixed rate. The senior notes require interest and principal payments to be
paid semi-annually and have various restrictive covenants, all of which have been met at December 31, 2003.
The 10.55% mortgage notes consist of five notes, which are cross-collateralized by 19 properties and
are due to a life insurance company. Although there is a negative spread between the carrying value and the
estimated fair value of the notes, the notes provide for the prepayment of principal subject to the payment of
penalties, which exceed this negative spread. Accordingly, prepayment of the notes at this time would not be
economically practicable (unaudited).
Mortgage notes payable are secured by 21 real estate facilities having an aggregate net book value of
approximately $55.5 million at December 31, 2003.