Iron Mountain Incorporated (NYSE:IRM), a leader in storage and information management services with a market capitalization of $35.17 billion, announced the completion of a private offering of $1.2 billion in senior notes on Friday. The company, which has delivered an impressive 85% return over the past year according to InvestingPro, issued the 6.25% Senior Notes at par value, set to mature on January 15, 2033.
Iron Mountain has the option to redeem the notes at a make-whole price before December 6, 2027, and at set redemption prices on or after that date. Certain asset sales or changes of control may trigger repurchase offers for the notes. The indenture agreement also includes covenants limiting the company's ability to incur additional indebtedness, pay dividends, sell assets, and engage in other corporate actions.
In other recent news, Iron Mountain Incorporated has shown substantial growth in its recent developments. The company reported 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. Iron Mountain 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.
Furthermore, Iron Mountain has upsized its private placement offering to $1.2 billion in senior notes, a significant increase from the initial $750 million proposed. The net proceeds from this offering are intended to reduce the outstanding debt under its revolving credit facility. The 6.25% Senior Notes are due in 2033 and will be guaranteed by its subsidiaries.
In addition, the company'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.
Iron Mountain 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.
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