WASHINGTON, Oct. 7 /PRNewswire-FirstCall/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today announced that it has priced, in an underwritten public offering, 7,000,000 shares of its 7.875% Series A Cumulative Redeemable Perpetual Preferred Stock with a liquidation preference of $25 per share. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 1,050,000 shares of 7.875% Series A Preferred Stock to cover overallotments, if any. Dividends for the 7.875% Series A Preferred Stock will be cumulative from the date of original issuance and payable quarterly on or about the 15th day of each January, April, July and October, beginning on or about January 15, 2011, at a rate of 7.875% per annum of its liquidation preference, which is equivalent to $1.96875 per annum per share. Barclays Capital, Raymond James, RBC Capital Markets, Macquarie Capital and Jefferies & Company acted as joint book-running managers, and Stifel Nicolaus Weisel, KeyBanc Capital Markets, Oppenheimer & Co. Inc., Baird and TD Securities acted as co-managers, for this offering.
The Company estimates that the net proceeds from this offering, after the underwriting discount and estimated offering expenses payable by the Company, will be approximately $169.0 million or approximately $194.4 million if the underwriters' overallotment option is exercised in full. The offering is expected to close on or about October 13, 2010, subject to customary closing conditions.
The Company intends to use all of the net proceeds from this offering, plus a portion of its available cash balances, to pay off in full its ACC4 Term Loan, which has an outstanding balance of $196.5 million. The Company intends to use its remaining cash balances together with the amounts available under its $100 million revolving credit facility (currently unused) to complete the current projects under development.
A shelf registration statement with respect to this offering was previously filed with the Securities and Exchange Commission and declared effective on May 4, 2009. A prospectus supplement relating to the offering has been filed with the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement. Copies of the prospectus supplement and the accompanying prospectus relating to these securities may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling (888) 603-5847; or Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716 or by calling (800) 248-8863.
About DuPont Fabros Technology, Inc.
DuPont Fabros Technology, Inc. is a real estate investment trust (REIT) and leading owner, developer, operator and manager of wholesale data centers. The Company's data centers are highly specialized, secure facilities used primarily by national and international Internet and enterprise companies to house, power and cool some of their computer servers that support many of their most critical business processes. DuPont Fabros Technology, Inc. is headquartered in Washington, DC.
SOURCE DuPont Fabros Technology, Inc.