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Subsequent Events
9 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

(13) SUBSEQUENT EVENTS

Unsecured Notes Offering

On April 14, 2016, the Issuers completed a private offering exempt from registration under the Securities Act of 1933, as amended, of $550 million aggregate principal amount of additional 2025 Unsecured Notes (the “New 2025 Notes”).  The net proceeds from the offering plus cash on hand (i) will be used to redeem the Issuers’ remaining $325.6 million 2020 Unsecured Notes, including the required make-whole premium and accrued interest, and (ii) were used to repay approximately $196 million of borrowings under its secured Term Loan Facility. Following the offering of the New 2025 Notes, $900 million aggregate principal amount of the 2025 Unsecured Notes is outstanding.

The New 2025 Notes will bear interest at the rate of 6.375% per year. Interest on the New 2025 Notes is payable on May 15 and November 15 of each year, beginning on May 15, 2016.  The interest payment on May 15, 2016 will include accrued interest from November 15, 2015. The New 2025 Notes will mature on May 15, 2025. At any time on or after May 15, 2020, the Issuers may redeem the New 2025 Notes, in whole or in part, at the applicable redemption prices set forth in the indenture governing the New 2025 Notes, plus accrued interest. Before May 15, 2020, the Issuers may redeem the New 2025 Notes, in whole or in part, at a redemption price equal to 100% of their principal amount, plus accrued interest and a “make-whole” premium. In addition, before May 15, 2018, the Issuers may redeem up to 40% of the New 2025 Notes at a redemption price equal to 106.375% of their principal amount, plus accrued interest, using the proceeds of certain equity offerings.

 

Clearview Acquisition

On April 1, 2016, the Company entered into a Membership Interest Purchase Agreement with the sellers of Clearview International, LLC, a Texas based colocation and cloud infrastructure services provider for cash consideration of $18.9 million.  The acquisition was funded with cash on hand and was considered a stock purchase for tax purposes.

The acquisition consisted of two Texas data centers. The data centers, located at 6606 LBJ Freeway in Dallas, Texas and 700 Austin Avenue in Waco, Texas, added approximately 30,000 square feet of colocation space, as well as a robust set of hybrid cloud infrastructure services that complement the Company’s global cloud capabilities.