DuPont Fabros Tech Prices 7.0 Million Cumulative Redeemable Perpetual Preferred Stock

DuPont Fabros Technology, Inc. DFT revealed it priced seven million of its 6.625 percent Series C Cumulative Redeemable Perpetual Preferred Stock with a liquidation preference of $25 a share. According to the company, the issue was fully an underwritten public offering.

DuPont Fabros said the Company also granted the underwriters a 30-day option to acquire a maximum of an additional 1.05 million shares of Series C Preferred Stock. The company indicated that the 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, 2016. The dividend rate would be 6.625 percent per annum of its liquidation preference, which was equivalent to $1.65625 per annum per share.

The Company said it expects the net proceeds from the offering to be approximately $169.0 million, or approximately $194.4 million if the underwriters' option was exercised in full. DuPont said that the offering is expected to close on or before May 17 subject to customary closing conditions.

DuPont Fabros indicated it plans to use the net proceeds to redeem all of the shares of its 7.875 percent Series A Cumulative Redeemable Perpetual Preferred Stock, which remain outstanding after its previously announced redemption on May 27, 2016 of 3,400,000 shares of Series A Preferred Stock. It would also use any remaining net proceeds to redeem a part of its outstanding shares of its 7.625 percent Series B Cumulative Redeemable Perpetual Preferred Stock and for other general corporate purposes.

On Tuesday, the stock traded 1.08 percent down.