New Issue: DuPont Fabros prices $550 million notes with 2017 final maturity at par to yield 8½%

By Paul A. Harris

St. Louis, Dec. 11 - DuPont Fabros Technology, LP priced a $550 million issue of senior notes (Ba2/BB-/) at par to yield 8½% on Friday, according to an informed source.

The notes priced through price talk of 8¾%, plus or minus 1/8%.

The notes have a final maturity of Dec. 15, 2017. However, $125 million becomes due on Dec. 15, 2015 and another $125 million on Dec. 15, 2016, with the final $300 million due at final maturity.

Jefferies & Co. Inc., Barclays Capital Inc. and Macquarie Capital Advisors were joint bookrunners.

DuPont Fabros is a Washington, D.C.-based owner, developer and operator of large-scale data center facilities, which are leased to such familiar high-tech names as Microsoft Corp., Google Inc., Yahoo! Inc. and Facebook. It plans to use the proceeds from the bond offering to repay secured bank debt and for working capital, including project completion costs.

Issuer:	DuPont Fabros Technology, LP
Amount:	$550 million
Final maturity:	Dec. 15, 2017 ($125 million due on Dec. 15, 2015 and on Dec. 15, 2016, with final $300 million due at final maturity)
Securities:	Senior notes
Bookrunners:	Jefferies & Co., Barclays Capital Inc., Macquarie Capital
Co-managers:	RBC Capital Markets Corp., Key Banc Capital Markets Inc., UBS Investment Bank, Raymond James & Associates, TD Securities, Oppenheimer & Co.
Coupon:	8½%
Price:	Par
Yield:	8½%
Call features:	Make-whole at Treasuries plus 50 bps until Dec. 15, 2013, then callable at 104.25, 102.125, par on and after Dec. 15, 2015
Equity clawback:	35% at 108.50 until Dec. 15, 2012
Change-of-control put:	101%
Trade date:	Dec. 11
Settlement date:	Dec. 16
Ratings:	Moody's: Ba2
	Standard & Poor's: BB-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8¾%, plus or minus 1/8%

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