WASHINGTON, DC-DuPont Fabros Technology will find out this week if the underwriters to its public offering of 7 million shares will exercise their overallotment option. If they do, the REIT stands to realize $194.4 million in proceeds, Mark Wetzel, CFO and Treasurer tells GlobeSt.com. If not, it will take home $169 million.

Last week it priced the shares of preferred stock at $25 per share, giving underwriters a 30-day option to purchase an additional 1,050,000.

The company intends to use all of the net proceeds from this offering, plus a portion of its available cash balances, to pay off its loan for its ACC4 data center. That loan has an outstanding balance of $196.5 million. It then intends to use its remaining cash balances together with the amounts available under its $100 million revolving credit facility, which is still open, to complete the current projects under development.

DuPont Fabros has found the capital markets open to its offering, Wetzek says. “There are three buckets you can basically chase. One is pure unsecured debt, which we didn’t want to do. Another is raising more stock in the common equity market, which we already did this year and we did feel we could do it again. But we felt the permanent capital made the most sense for us right now.”