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

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. 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.



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