DuPont Fabros tenders, seeks consents for $550 million of 8½% notes

By Susanna Moon

Chicago, Sept. 9 - DuPont Fabros Technology, Inc. said operating partnership DuPont Fabros Technology, LP began a tender offer and consent solicitation for its $550 million of outstanding 8½% senior notes due 2017.

The tender offer will end at 11:59 p.m. ET on Oct. 7.

The total purchase price will be $1,060.04 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 23, the consent date. The total payment includes a consent payment of $30.00 per $1,000 of notes.

Those who tender after the consent date will receive $1,030.04 per $1,000 principal amount.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be Sept. 24 for early tendered notes and promptly after the offer ends for all other tenders.

The company is soliciting consents to amend the notes to eliminate or modify substantially all of the restrictive covenants and some events of default, according to a press release.

Holders may not tender their notes in the tender offer without delivering consents, and holders may not deliver consents to the proposed amendments without tendering their notes.

Tendered notes may be withdrawn until the consent date.

Funding for the offer will come from proceeds of a concurrent public offering of a new series of senior notes and available cash.

DuPont Fabros began a roadshow on Sept. 10 for a $600 million offering of eight-year senior notes, as reported by Prospect News.

The tender offer will be conditioned on the closing of the notes offering with enough proceeds to fund the offer, on the company obtaining the consent of holders of more than 50% of the outstanding notes and the execution of a supplemental indenture adopting the amendments.

The company said it plans to call any notes not tendered in the offer at a price that may be higher or lower than that of the offer.

Goldman Sachs & Co. (800 828-3182 or collect 212 357-6436) is the dealer manager. Global Bondholder Services Corp. (866 470-4200) is the information agent and depositary.

DuPont Fabros is a Washington, D.C.-based real estate investment trust that focuses on wholesale data centers.

© 2015 Prospect News.
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