By Devika Patel
Knoxville, Tenn., April 12 – Netrality Properties said it settled a $325 million issue of investment grade-rated senior secured notes.
Goldman, Sachs & Co. was the agent.
The notes have staggered terms of four, five, six and seven years.
Proceeds will be used to pay off three mortgage loans and for general corporate purposes.
“This issuance is the first step in an important strategic shift in Netrality's debt strategy,” chief executive officer Gerald Marshall said in a press release.
“As one of only four data center companies with investment grade-rated debt, we have not only reduced our cost of capital but also established access to a capital source that will allow us to seize opportunities even in more challenging market conditions.
“The notes are also consistent with our strategy to ladder maturities and reduce exposure to adjustable rate borrowing,” he said in the release.
“We are encouraged by the strong demand for this offering from institutional debt investors and the confidence they've placed in our platform and our properties,” Marshall stated.
The New York private real estate investment trust specializes in network-neutral core interconnection and colocation facilities.
| Issuer: | Netrality Properties
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| Amount: | $325 million
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| Description: | Senior secured notes
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| Maturity: | Four, five, six and seven years
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| Placement agent: | Goldman, Sachs & Co.
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| Announcement date: | April 12
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| Distribution: | Private placement
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