WASHINGTON, DC-DuPont Fabros Technology will find out this week if the underwriters to its public offering of 7 million shares will exercise their overallotment option. If they do, the REIT stands to realize $194.4 million in proceeds, Mark Wetzel, CFO and Treasurer tells GlobeSt.com. If not, it will take home $169 million.
Last week it priced the shares of preferred stock at $25 per share, giving underwriters a 30-day option to purchase an additional 1,050,000.
The company intends to use all of the net proceeds from this offering, plus a portion of its available cash balances, to pay off its loan for its ACC4 data center. That loan has an outstanding balance of $196.5 million. It then intends to use its remaining cash balances together with the amounts available under its $100 million revolving credit facility, which is still open, to complete the current projects under development.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
