DuPont Fabros Technology Closes Public Offering Of Series C Cumulative Redeemable Perpetual Preferred Stock
DuPont Fabros Technology, Inc. (NYSE: DFT) revealed the completion of its underwritten public offering of 8.05 million shares of its 6.625 percent Series C Cumulative Redeemable Perpetual Preferred Stock with a liquidation preference of $25 per share.
According to the company, the total shares sold included 1.05 million shares of Series C Preferred Stock following the full exercise of the underwriters' option to acquire additional shares of Series C Preferred Stock. The tech firm said that dividends for the Series C Preferred Stock would be cumulative from the date of original issuance and payable quarterly on or about the 15th day of each February, May, August and November, commencing from August 15. The rate of interest 6.625% per annum is equivalent to $1.65625 per annum per share.
DuPont Fabros estimated the net proceeds from this offering to be about $194.4 million. That excluded the underwriting discount and estimated offering expenses payable by it. The company added that it would use the net proceeds to redeem all of its outstanding shares of its 7.875 percent Series A Cumulative Redeemable Perpetual Preferred stock. The company indicated that the remaining net proceeds would be used to redeem a part of its 7.625 percent Series B Cumulative Redeemable Perpetual Preferred Stock apart from other corporate purposes.
In a nutshell, the company was keen to reduce the interest costs by redeeming higher interest rate preferred stocks. The joint-book runners to the issue were Stifel, Nicolaus & Company, Incorporated, Raymond James & Associates, Inc., Goldman, Sachs & Co. and RBC Capital Markets, LLC.
The stock traded 2.18 percent down on Tuesday.
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