Washington, DC REIT Suspends Santa Clara, CA Development and Reports Leasing Activity
WASHINGTON, DC /PRNewswire-FirstCall/ -- DuPont Fabros Technology, Inc. (NYSE:DFT) has closed on a $100 million secured loan with a syndicate of lenders led by KeyBank National Association.
The loan has a three-year term with a one-year extension at a floating rate of LIBOR plus 3.50% (4.0% in the extension period) and includes quarterly principal payments of $500,000.
The loan is secured by the Company's newly constructed ACC4 prototype data center (center photo
) asset in Ashburn, Virginia, which is currently 87.5% leased.
) asset in Ashburn, Virginia, which is currently 87.5% leased. 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 $250 million over the next 18 months. Proceeds from the new loan will be used to fund the projects under development.
The Company has no debt maturities due until December 2010 assuming the Company is able to exercise one-year extension options, which are subject to financial covenants which would be required to be met.
"We are very pleased to have secured this loan in a very difficult credit environment when capital is simply not readily available," stated Hossein Fateh, (top right photo) the Company's President and CEO.
"While the financing is less than the planned $300 to $400 million, it is an accomplishment considering the times. We are actively seeking other lenders for the syndicate.
" In addition, we are negotiating mezzanine financing on ACC4 and exploring other financing alternatives to obtain the shortfall in the originally planned $300 to $400 million. While no assurances can be made, our goal is to obtain additional proceeds before year-end."
August 2008, the Company commenced construction on a $270 million wholesale data center in Santa Clara, California, based on the expectation of higher loan proceeds from ACC4. Due to the level of loan proceeds obtained, development at the Santa Clara site has been temporarily suspended.
Development of ACC5 in Ashburn, Virginia and NJ1 in Piscataway, New Jersey are progressing. The Company expects to complete both developments as planned assuming additional loan proceeds are obtained.
The Company recently signed two leases totaling approximately 1.0 megawatts of critical load and comprising 5,480 of raised square feet. The first lease, executed in September 2008, is for 0.6 megawatts of critical load in ACC4. 
The second lease, executed in October 2008, is for 0.4 megawatts of critical load in the Company's CH1 facility located in Elk Grove Village, Illinois. The tenants for both leases are Internet companies that have not previously leased space from the Company.
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 is headquartered in Washington, DC.
For more information, please visit http://www.dft.com/
CONTACT:
Victoria Baker, Investor\Media Inquiries, of FinancialRelations Board, +1-703-796-1798, for DuPont Fabros Technology, Inc.
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