DuPont Fabros Offering Will Fund Chicago Project

DuPont Fabros Technology (DFT) has lined up tenants for the second phase of its huge Chicago-area data center. And now it's lined up the financing as well. DuPont Fabros said today that it has commenced an underwritten public offering of its Series B Preferred Stock.

The first phase of the DuPont Fabros CH1 data center, pictured above, has been fully leased.
DuPont Fabros Technology has lined up tenants for the second phase of its huge Chicago-area data center. And now it's lined up the financing as well. DuPont Fabros (NYSE:DFT) said today that it has commenced an underwritten public offering of its Series B Cumulative Redeemable Perpetual Preferred Stock, and has applied to list the Series B shares on the New York Stock Exchange.

The company said it intends to use all of the net proceeds from the offering, together with borrowings under its $100 million revolving credit facility, to develop the second phase of its CH1 data center in Elk Grove Village, Illinois. DFT has pre-leased approximately 5.2 megawatts of critical load in the second phase to two existing tenants requiring expansion space.

The joint book-running managers for this offering are Barclays Capital, Raymond James, RBC Capital Markets, Jefferies and Stifel Nicolaus Weisel, and the co-managers are Oppenheimer & Co. and KeyBanc Capital Markets. The company expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Series B Preferred Stock initially sold to the public to cover overallotments.

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