Data center services firm Terremark Worldwide (TWW) will sell an additional 11 million shares of its common stock at $8 a share, the Miami-based company said Friday. Terremark said it expects net proceeds from this offering to be about $82.6 million after deducting underwriting discounts and commissions. The offering is expected to close Wednesday, March 28, with Credit Suisse Securities (USA) managing the offering. Terremark shares closed down 55 cents Friday to $7.80, down from a 52-week high of $9.15 on Feb. 21.
Last month Terremark filed a shelf registration with the SEC saying it may periodically sell up to $100 million in debt securities, common and preferred stock and warrants. Under a shelf registration, a company may sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale. Terremark said the proceeds would be used for general corporate purposes, which may include debt repayment, working capital, capital spending, acquisitions, joint ventures and stock repurchase programs.
Terremark is in the midst of a significant expansion in which it will build multi-facility data center campuses in Culpeper County, Virginia and an unnannounced site in Silicon Valley.