DuPont Fabros (DFT) is issuing $169 milion of 7.875% Preferred Stock ($25 per share liquidation preference) to pay off the term loan that financed its ACC4 building in Ashburn, Virginia. After this transaction closes, the company's only remaining secured debt will be the term loan on its ACC5 expansion, which has a balance of $150 million. The covenants on the outstanding ACC5 loan are fairly similar to the ACC4 loan, and in addition to requiring DFT to maintain specific balance sheet and cash flow ratios, limit the number of new projects it can develop while the loan remains outstanding. ACC4 is fully leased, and includes well-known tenants like Facebook, Yahoo (YHOO), Rackspace (RAX), and Match.com
Most of DFT's remaining debt is the $550 million of 8.5% of unsecured notes it issued last December, which matures in 2017. Digital Realty (DLR), in contrast, has over $1 billion of mortgages outstanding, which represent about 50% of its total debt outstanding, with over 80% of its unsecured debt maturing in the 2020s.