PORTSMOUTH, N.H. - Iron Mountain Incorporated (NYSE: NYSE:IRM), a provider of information management services with a market capitalization of $35.4 billion, has upsized its private placement offering to $1.2 billion in senior notes, a significant increase from the initial $750 million proposed. The company made the announcement today, stating that the 6.25% Senior Notes are due in 2033 and will be guaranteed by its subsidiaries. According to InvestingPro data, the company has seen remarkable growth with a 91.6% return over the past year and currently trades near its 52-week high.
These notes will not be available for general public investment as they have not been registered under the Securities Act of 1933. Instead, they are being offered exclusively to qualified institutional buyers and to non-U.S. persons in offshore transactions.
The company, which serves a vast majority of Fortune 1000 companies, plans to allocate the net proceeds from this offering towards repaying a portion of its existing debt under a revolving credit facility.
Iron Mountain emphasized that the issuance of the notes should not be considered an offer to sell or a solicitation of an offer to buy securities. The sale of the securities will not take place in any jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of that jurisdiction.
This financial move comes as part of Iron Mountain's broader strategy to manage its capital structure and financial leverage. The company operates in 60 countries and offers a suite of services that includes digital transformation, information security, and data center management.
The information for this article is based on a press release statement from Iron Mountain Incorporated.
In other recent news, Iron Mountain Incorporated announced robust growth in the third quarter of 2024, with record quarterly revenues of $1.6 billion, a 12% increase from the previous year, and a rise in adjusted EBITDA to $568 million. This growth was driven by expansion in physical storage, digital solutions, and asset life cycle management (ALM). The company also declared a quarterly dividend of $0.715 per share and projected Q4 revenue of approximately $1.6 billion and adjusted EBITDA of about $595 million.
In addition, Iron Mountain plans to issue $750 million of Senior Notes due in 2033. The net proceeds from this offering are intended to reduce the outstanding debt under its revolving credit facility. The final details regarding the notes, including the terms and the timing of the offering, will depend on prevailing market conditions and other influencing factors.
Iron Mountain's data center segment showed strong growth with a 20% organic increase and 106 megawatts of new leases year-to-date. ALM revenue surged 145% year-on-year to $102 million. The company secured significant contracts in ALM, including a seven-year contract with a large Australian government department and deals with an Australian telecommunications provider and a global technology company in the U.S.
The company also made strategic acquisitions of Wisetek and APCD to expand IT asset disposition capabilities, further enhancing Iron Mountain's service offerings. The company launched the InSight Digital Experience (DXP) platform, securing 24 new recurring revenue deals. These recent developments indicate Iron Mountain's commitment to growth and its optimism for a strong fourth quarter and the setup heading into 2025.
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