OVERLAND PARK, Kan., Sept. 23, 2020 /PRNewswire/ -- QTS Realty Trust, Inc. (NYSE: QTS) today announced that its subsidiaries, QualityTech, LP and QTS Finance Corporation (the "Issuers"), have upsized and priced their private offering of $500 million aggregate principal amount of senior notes due 2028 (the "Notes"). The offering was upsized from the previously announced $400 million aggregate principal amount. The Notes will have an interest rate of 3.875% per annum and will be issued at a price equal to 100% of their face value. The Notes will mature on October 1, 2028.
The net proceeds from the offering are expected to be used to repay a portion of the amount outstanding under QTS' unsecured revolving credit facility. Subsequently, QTS intends to use the corresponding availability under its unsecured revolving credit facility, along with additional borrowings thereunder or other available cash or forward equity proceeds, to fund the redemption of, and satisfy and discharge the indenture pursuant to which the Issuers issued, their outstanding 4.750% Senior Notes due 2025 (the "2025 Senior Notes").
When issued, the Notes will be unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of QTS' subsidiaries, other than the Issuers, that guarantee QTS' unsecured credit facility.
The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons outside the U.S. in accordance with Regulation S under the Securities Act.
The sale of the Notes is expected to be consummated on October 7, 2020, subject to customary closing conditions.
The Notes have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. In addition, this press release does not constitute a notice of redemption with respect to the 2025 Senior Notes or an obligation to issue such notice of redemption. Such notice of redemption, if given, will only be given in accordance with the applicable provisions of the indenture governing the 2025 Senior Notes.
QTS Realty Trust, Inc. (NYSE: QTS) (the "Company") is a leading provider of data center solutions across a diverse footprint spanning more than 7 million square feet of owned mega scale data center space throughout North America and Europe. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to more than 1,200 leading hyperscale technology companies, enterprises, and government entities.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to the COVID-19 pandemic, its impact on the Company and the Company's response thereto and to the Company's strategy, plans, intentions, capital resources, liquidity, portfolio performance, results of operations, anticipated growth in the Company's funds from operations and anticipated market conditions contain forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters.
The forward-looking statements contained in this press release reflect the Company's current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed in any forward-looking statement. The Company does not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the Company's markets or the technology industry; obsolescence or reduction in marketability of the Company's infrastructure due to changing industry demands; global, national and local economic conditions; risks related to the COVID-19 pandemic, including, but not limited to, the risk of business and/or operational disruptions, disruption of the Company's customers' businesses that could affect their ability to make rental payments to the Company; supply chain disruptions and delays in the construction or development of the Company's data centers; risks related to the Company's international operations; difficulties in identifying properties to acquire and completing acquisitions; the Company's failure to successfully develop, redevelop and operate acquired properties or lines of business; significant increases in construction and development costs; the increasingly competitive environment in which the Company operates; defaults on, or termination or non-renewal of leases by customers; decreased rental rates or increased vacancy rates; increased interest rates and operating costs, including increased energy costs; financing risks, including the Company's failure to obtain necessary outside financing; dependence on third parties to provide Internet, telecommunications and network connectivity to the Company's data centers; the Company's failure to qualify and maintain its qualification as a real estate investment trust; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in real estate and zoning laws, revaluations for tax purposes and increases in real property tax rates; and limitations inherent in the Company's current and any future joint venture investments, such as lack of sole decision-making authority and reliance on the Company's partners' financial condition.
While forward-looking statements reflect the Company's good faith beliefs, they are not guarantees of future performance. Any forward-looking statements speak only as of the date on which they are made. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, as well as other periodic reports the Company files with the Securities and Exchange Commission, many of which should be interpreted as being heightened as a result of the ongoing COVID-19 pandemic and the actions taken to contain the pandemic or mitigate its impact.
Investor Relations Contact:
Carter B. Cromley
SOURCE QTS Realty Trust, Inc.