DuPont Fabros Technology, Inc. Announces Pricing of Public Offering of 7,000,000 Shares of Series C Cumulative Redeemable Perpetual Preferred Stock

WASHINGTON, May 10, 2016 (GLOBE NEWSWIRE) -- DuPont Fabros Technology, Inc. (the “Company”) (NYSE: DFT) today announced it has priced an underwritten public offering of 7,000,000 shares of its 6.625% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”) with a liquidation preference of $25 per share. The Company also granted the underwriters of the offering a 30-day option to purchase up to an additional 1,050,000 shares of Series C Preferred Stock.  Dividends for the Series C Preferred Stock will be cumulative from the date of original issuance and payable quarterly on or about the 15th day of each February, May, August and November, beginning on August 15, 2016, at a rate of 6.625% per annum of its liquidation preference, which is equivalent to $1.65625 per annum per share.   

The Company estimates that the net proceeds from this offering, after the underwriting discount and estimated offering expenses payable by the Company, will be approximately $169.0 million, or approximately $194.4 million if the underwriters’ option is exercised in full. The offering is expected to close on or about May 17, 2016, subject to customary closing conditions.

The Company intends to use the net proceeds from this offering to redeem all of the shares of the Company’s 7.875% Series A Cumulative Redeemable Perpetual Preferred Stock (the “Series A Preferred Stock”) that remain outstanding following the Company’s previously announced redemption on May 27, 2016 of 3,400,000 shares of Series A Preferred Stock and to use any remaining net proceeds to redeem a portion of the outstanding shares of the Company’s 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock and for other general corporate purposes.

Stifel, Nicolaus & Company, Incorporated, Raymond James & Associates, Inc., Goldman, Sachs & Co. and RBC Capital Markets, LLC will serve as joint book-running managers for the offering.

A shelf registration statement relating to the securities in this offering has been filed previously with the Securities and Exchange Commission (the “SEC”) and is effective. Any offer of the securities will be made exclusively by means of a prospectus supplement and accompanying prospectus.  Prospective investors should read the preliminary prospectus supplement and the accompanying prospectus included in the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the offering of the securities. Copies of these documents may be obtained by contacting: (a) Stifel at One South Street, 15th Floor, Baltimore, MD 21202, Attn: Syndicate Department, by calling 855-300-7136, or by e-mail at [email protected]; Raymond James at 880 Carillon Parkway, St. Petersburg, FL 33716, by calling 800-248-8863 or by e-mail at [email protected]; Goldman, Sachs & Co. at 200 West Street, New York, NY 10282, Attn: Prospectus Department, by calling 866-471-2526, or by e-mail at [email protected]; or RBC Capital Markets at Three World Financial Center, 200 Vesey Street, 8th Floor, New York, NY 10281, by calling (866) 375-6829, or by e-mail at [email protected]; or (b) the Internet site of the Securities and Exchange Commission at http://www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

This press release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, whether or not the Company will offer the securities or consummate the offering, the anticipated terms of the offering, and the anticipated use of the proceeds of the offering. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.  For a further discussion of these and other factors that could cause future results to differ materially from any forward-looking statements, see the risk factors described under the “Risk Factors” section of the prospectus supplement and the risk factors incorporated by reference therein from the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and in other documents that the Company files from time to time with the SEC. 

About DuPont Fabros Technology, Inc.

DuPont Fabros Technology, Inc. is a leading owner, developer, operator and manager of enterprise-class, carrier neutral, large multi-tenant wholesale data centers.  The Company’s facilities are designed to offer highly specialized, efficient and safe computing environments in a low-cost operating model.  The Company’s customers outsource their mission critical applications and include national and international enterprises across numerous industries, such as technology, Internet content providers, media, communications, cloud-based, healthcare and financial services.  The Company’s 12 data centers are located in four major U.S. markets, which total 3.1 million gross square feet and 273 megawatts of available critical load to power the servers and computing equipment of its customers.  DuPont Fabros Technology is a real estate investment trust (REIT) headquartered in Washington, D.C.

Contact: Jeff Foster, Executive Vice President and Chief Financial Officer of DuPont Fabros Technology, Inc., +1-202-478-2333.

Source: DuPont Fabros Technology, Inc.

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