DuPont Fabros wraps early tenders for $418.11 million of 8½% notes

By Marisa Wong

Madison, Wis., Sept. 26 - DuPont Fabros Technology, Inc. announced that it received tenders for $418,111,000, or 76.02%, of operating partnership DuPont Fabros Technology, LP's $550 million of outstanding 8½% senior notes due 2017 as of 5 p.m. ET on Sept. 23, the early tender deadline of its previously announced tender offer.

The operating partnership decided to accept for purchase all notes tendered by the early deadline, according to a press release. The early tendered notes settled on Tuesday, concurrently with the closing of the company's $600 million issue of 5 7/8% notes due 2021, proceeds of which will be used to fund the tender offer.

DuPont Fabros said it received the necessary consents to amend the indenture governing the 8½% notes as of the early tender deadline and entered into a supplemental indenture effecting the changes on Tuesday. The company needed consents from holders of a majority in principal amount of the notes to eliminate or modify substantially all of the restrictive covenants and some events of default under the notes.

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

Tendered notes may no longer be withdrawn.

Holders who tendered their notes by the early deadline received $1,060.04 for each $1,000 principal amount. The total payment includes a $30.00 consent payment.

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

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

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

The company said it planned to issue on Tuesday a call notice for any notes not tendered in the offer. The redemption price may be higher or lower than the consideration under the tender 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. It began the tender offer and consent solicitation on Sept. 10.

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