December 5, 2009 – (HOSTSEARCH.COM) –
DuPont Fabros Technology, Inc., today announced that the Company closed on a $150 million secured loan with a syndicate of lenders led by TD Bank. The loan has a five-year term at a floating rate of LIBOR plus 4.25% with a LIBOR floor of 1.50%. The loan is secured by the Company’s newly constructed ACC5 data center asset in Ashburn, Virginia. The Company expects to use the proceeds to repay the current $25 million term loan secured by the ACC5 data center, construct Phase II of ACC5, fund an interest reserve of $10 million required under the new term loan and for general corporate purposes.
The loan includes an accordion feature that allows new lenders to join the existing bank syndicate to increase the amount of the loan up to an additional $100 million if certain leasing and other covenants have been met.
“We are pleased to have secured this loan in a challenging credit environment,” stated Hossein Fateh, the Company’s President and CEO. “This loan will allow us to continue to make progress on our development pipeline by completing Phase II of ACC5. We now expect that ACC5 Phase II will be placed in service in October 2010.”
Leasing Update
In November 2009, the Company executed two new tenant leases at ACC5, Phase I in Ashburn, Virginia. The first lease provides for 1.138 megawatts (MW) of critical load with a term of five years and a second provides for 2.275 MW with a term of 12 years. One of the new ACC5 Phase I tenants has moved into space that we had leased to another tenant who intended to take occupancy at a later date. We exercised an option to move this tenant from ACC5 Phase I into ACC5 Phase II. As of November 30, 2009, ACC5 Phase I was 79% leased and Phase II was 50% leased.
We also recently renewed until 2012 a lease which represented our only 2010 scheduled lease expiration. This lease covered space at our VA3 data center in Reston, Virginia.
About DuPont Fabros Technology, Inc.
DuPont Fabros Technology, Inc. (NYSE: DFT) is a real estate investment trust (REIT) and leading owner, developer, operator and manager of wholesale data centers. The Company’s data centers are highly specialized, secure facilities used primarily by national and international technology companies to house, power and cool the computer servers that support many of their most critical business processes. DuPont Fabros Technology, Inc. is headquartered in Washington, DC.
