QTS Realty Trust has announced the upsize and pricing of an underwritten public offering of 4.4 million shares of its Class A common stock offered by the forward purchasers or their affiliates in connection with the forward sale agreements at a public offering price of $64.90 per share, the company reported on Tuesday.
The offering was upsized from the previously announced offering size of 4 million shares of common stock. The forward purchasers or their affiliates have also granted the underwriters a 30-day option to purchase an aggregate of up to an additional 660 thousand shares of common stock.
QTS has entered into separate forward sale agreements with each of Bank of America Securities and Morgan Stanley & Co. LLC or their affiliates, with respect to 4.4 million shares of the company's common stock covered by the offering.
The forward purchasers or their affiliates are expected to borrow from third parties and sell 4.4 million shares of QTS’ common stock to the underwriters in connection with the forward sale agreements. The company expects to physically settle the forward sale agreements in full and receive proceeds by June 30, 2021.
QTS will not initially receive any proceeds from the sale of shares of its common stock offered by the forward purchasers or their affiliates to the underwriters, except in certain circumstances described in the prospectus supplement relating to the offering.
The company has projected that net proceeds to it, after deducting the underwriting discounts and commissions and other estimated offering expenses, will be approximately $273.6 million, assuming full physical settlement of the forward sale agreements, and excluding the option to purchase additional shares.
When drawn, QTS will use the net proceeds of the offering to repay a portion of the amounts outstanding under the company's unsecured revolving credit facility, for capital expenditures, including the development of properties in the company's portfolio, and for other general corporate purposes.
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 7 million square feet of owned mega scale data center space throughout North America and Europe.
Through its software-defined data center platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities.