WASHINGTON, March 3, 2011 /PRNewswire/ -- DuPont Fabros Technology, Inc. (NYSE: DFT) today announced that it has priced, in an underwritten public offering, 3,600,000 shares of its 7.625% Series B 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 540,000 shares of 7.625% Series B Preferred Stock. Dividends for the 7.625% Series B 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 April 15, 2011, at a rate of 7.625% per annum of its liquidation preference, which is equivalent to $1.90625 per annum per share. Barclays Capital, Raymond James, RBC Capital Markets, Jefferies and Stifel Nicolaus Weisel acted as joint book-running managers, and Oppenheimer & Co. Inc. and KeyBanc Capital Markets 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 $86.8 million or approximately $99.9 million if the underwriters' option is exercised in full. The offering is expected to close on or about March 8, 2011, subject to customary closing conditions.
The company intends to use all of the net proceeds from the offering together with borrowings under its currently undrawn $100 million revolving credit facility to develop the second phase of its CH1 data center in Elk Grove Village, Illinois. The company estimates that it currently needs $170 million to complete the development of the second phase of its CH1 data center.
An automatic shelf registration statement with respect to this offering was previously filed with the Securities and Exchange Commission on November 4, 2010. 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, by calling (888) 603-5847 or emailing to Barclaysprospectus@broadridge.com; 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 technology companies to house, power and cool the computer servers which support many of their most critical business processes. DuPont Fabros Technology, Inc. is headquartered in Washington, DC.
SOURCE DuPont Fabros Technology, Inc.