Iron Mountain Incorporated Announces Debt Offering

Rhea-AI Summary

Iron Mountain (NYSE: IRM) announced a proposed private placement offering of $500 million in Senior Notes due 2028 and $1.3 billion in Senior Notes due 2030. The net proceeds will be used to repay outstanding borrowings under its revolving credit facility and redeem $500 million of 4⅜% Senior Notes due 2021, along with $1 billion of 5¾% Senior Subordinated Notes due 2024. The Notes will be guaranteed by the company's subsidiaries and are being offered only to qualified institutional buyers.

Positive

• Proposed offering of $1.8 billion in Senior Notes strengthens balance sheet.
• Intended use of proceeds to repay debt enhances liquidity and financial stability.

Negative

• Issuing new debt may increase overall leverage.
• Notes not registered under the Securities Act could limit future investor options.

BOSTON, June 17, 2020 /PRNewswire/ -- Iron Mountain Incorporated (NYSE: IRM) (the "Company"), the storage and information management services company, today announced a proposed offering by way of a private placement of a total of $500 million aggregate principal amount of its Senior Notes due 2028 (the "2028 Notes") and $1,300 million aggregate principal amount of its Senior Notes due 2030 (the "2030 Notes" and, together with the 2028 Notes, the "Notes").  The Notes will be fully and unconditionally guaranteed by the Company's subsidiaries that guarantee each series of its existing notes.  The Company intends to use the net proceeds from the offering of the Notes to repay a portion of the outstanding borrowings under the Company's revolving credit facility and to redeem all $500.0 million of its 4⅜% Senior Notes due 2021 and all $1.0 billion of its 5¾% Senior Subordinated Notes due 2024.  The exact terms of the Notes and timing of the offering will depend upon market conditions and other factors.

The Notes will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or under any state securities law, and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.  The Notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the Securities Act.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services.  Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across more than 1,480 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts.  Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.

Investor Relations Contacts:
Greer Aviv	Nathan McCurren
Senior Vice President, Investor Relations	Director, Investor Relations
Greer.Aviv@ironmountain.com	Nathan.McCurren@ironmountain.com
(617) 535-2887	(617) 535-2997

 

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SOURCE Iron Mountain Incorporated

FAQ

What is Iron Mountain's recent debt offering?

Iron Mountain announced a $1.8 billion offering of Senior Notes, including $500 million due 2028 and $1.3 billion due 2030.

How will Iron Mountain use the proceeds from the debt offering?

The proceeds will be used to repay existing borrowings and redeem earlier debt.

What are the terms of Iron Mountain's Senior Notes?

The Senior Notes will be guaranteed by the company's subsidiaries and are offered to qualified institutional buyers.

When are the Senior Notes due?

The Senior Notes are due in 2028 and 2030.

Is Iron Mountain's debt offering registered?

No, the Notes will not be registered under the Securities Act.