Exhibit 10.3
[First Union Letterhead]
SWAP TRANSACTION
CONFIRMATION
Date: October 27, 1998
To: PUBLIC STORAGE PROPERTIES, LTD. ("Counterparty")
Address: 701 Western Avenue, Suite 200
Glendale, CA 91201
Fax: (818) 244-9267
Attention: David P. Singelyn
From: FIRST UNION NATIONAL BANK ("First Union")
Ref. No. 93165/127002
Dear Mr. Singelyn:
Reference is made to that certain Confirmation dated October 26, 1998 between
the Counterparty and First Union regarding a Transaction with a First Union
reference number of 93165/127002, a Trade Date of October 23, 1998, an Effective
Date of October 23, 1998 and a Termination Date of October 23, 2000 ("Prior
Confirmation"). This Confirmation amends and restates the Prior Confirmation.
Amended terms are highlighted below in bold.
This confirms the terms of the Transaction described below between Counterparty
and First Union. This Transaction is subject to the 1991 ISDA Definitions
published by the International Swaps and Derivatives Association, Inc. ("ISDA
Definitions"), which are incorporated herein by reference. Fixed Amounts and
Floating Amounts for each applicable Payment Date hereunder will be calculated
in accordance with the ISDA Definitions, and if any Fixed Amount and Floating
Amount are for the same Payment Date hereunder, then those amounts shall not be
payable and instead the Fixed Rate Payer shall pay the positive difference, if
any, between the Fixed Amount and the Floating Amount, and the Floating Rate
Payer shall pay the positive difference, if any, between the Floating Amount and
the Fixed Amount.
Transaction Type: Interest Rate Swap
- -----------------
Currency for Payments: U.S. Dollars
- ----------------------
Notional Amount: $5,000,000.00
- ----------------
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Term:
- -----
Trade Date: October 23, 1998
Effective Date: October 23, 1998
Termination Date: October 23, 2000, subject to the Modified
following Business Day Convention
Fixed Amounts:
- --------------
Fixed Rate Payer: Counterparty
Payment Dates: Monthly on the 23rd day of each month
commencing November 23, 1998, through and
including the Termination Date.
Business Day Convention: Modified Following
Business Day: New York
Fixed Rate: 4.655%
Fixed Rate Day Count Fraction: Actual/360
Floating Amounts:
- -----------------
Floating Rate Payer: First Union
Payment Dates: Monthly on the 23rd day of each month
commencing November 23, 1998, through and
including the Termination Date.
Business Day Convention: Modified Following
Business Day: New York
Floating Rate for initial
Calculation Period: 5.21938%
Floating Rate Option: USD-LIBOR-BBA
Designated Maturity: 1 Month
Spread: None
Floating Rate Day Count Fraction: Actual/360
Floating Rate Determined: Two London Banking Days prior to each
Reset Date
Reset Dates: The first day of each Calculation Period
Compounding: Inapplicable
Rounding convention: 5 decimal places per the ISDA Definitions
Calculation Agent: First Union
- ------------------
Payments to First Union: First Union Charlotte
- ------------------------ Capital Markets
Attention: Derivatives Desk
Fed. ABA No. 053000219
Ref. No.:93165/127002
First Union Contacts: Settlements and/or Rate Resets:
- --------------------- Tel: (800) 249-3865
Fax: (704) 383-9139
Documentation and/or Collateral:
Tel: (704) 383-5678
Fax: (704) 383-9139
Please quote transaction reference number.
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First Union Address: One First Union Center
- -------------------- 301 South College Street DC-4
Charlotte, NC 28288-0601
Payments to Counterparty: Please forward payment instructions to First
Union in Charlotte, NC. Payments will not
be made to Counterparty without its written
instructions.
Documentation
- -------------
This Confirmation is a binding and complete contract between the parties,
provided that if at any time there exists a master agreement (however described)
between the parties governing this Transaction ("Master Agreement"), this
Confirmation supplements, forms part of and will be governed by the Master
Agreement. Unless otherwise provided in the Master Agreement, this Confirmation
is governed by the law (and not the law of conflicts) of the State of New York.
Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing a copy of this Confirmation and returning it to us.
Very truly yours,
FIRST UNION NATIONAL BANK
By: /s/ Peter J. Lancos
------------------------
Name: Peter J. Lancos
Title: Vice President
By: /s/ Ryan S. Hale
---------------------
Name: Ryan S. Hale
Title: Capital Markets Officer
Accepted and confirmed as of the date first above written:
PUBLIC STORAGE PROPERTIES, LTD.
By: Public Storage, Inc.,
Its general partner
By: /s/ David P. Singelyn
--------------------------
Name: David P. Singelyn
Title: Vice President and Treasurer
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