SOURCE: Netrality Properties

Netrality Properties

April 12, 2017 06:45 ET

Netrality Properties Announces Issuance of $325 Million of Investment Grade Senior Secured Notes

NEW YORK, NY--(Marketwired - April 12, 2017) - Netrality Properties, a private real estate investment trust (REIT) specializing in network-neutral core interconnection and colocation facilities, is pleased to announce the closing of $325 million privately placed investment grade-rated Senior Secured Notes with staggered terms of 4, 5, 6 and 7 years (the "Notes"). Net proceeds from the issuance of the Notes 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. 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," said Gerald Marshall, Netrality's Chief Executive Officer. "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. We look forward to working together again with these companies as we continue to grow our business."

Goldman, Sachs & Co. acted as sole placement agent on the Notes.

The offer and sale of the Notes have not been registered under the Securities Act of 1933 as amended, and the Notes may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of any Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Netrality Properties:

Netrality Properties owns and operates network-neutral core interconnection buildings and meet me rooms providing a mix of retail and wholesale colocation and data center solutions driven by network-rich, fiber dense interconnection environments. Currently, Netrality owns and operates seven strategic network interconnection properties: 717 S Wells in Chicago, 1301 Fannin in Houston, 1102 Grand in Kansas City, 325 Hudson in New York City (owned in joint venture with Jamestown), 401 N Broad in Philadelphia, and 210 N Tucker and 900 Walnut in St. Louis.

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