8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Dec 31, 2009)

Filed December 31, 2009For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) has filed an 8-K report on December 31, 2009, disclosing its entry into equity distribution agreements with Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Credit Suisse Securities (USA) LLC. These agreements allow DLR and its operating partnership, Digital Realty Trust, L.P., to issue and sell shares of common stock with an aggregate offering price of up to $400 million through these agents. The sales will be conducted as "at the market" offerings, meaning shares will be sold on the New York Stock Exchange or through market makers, at prevailing market prices. The net proceeds from these stock sales are intended to be used for general corporate purposes, including temporarily repaying borrowings under DLR's revolving credit facility, acquiring additional properties, and funding development or redevelopment projects. This strategic move provides DLR with flexibility to access capital markets for growth initiatives and financial management during the reporting period.

Key Highlights

  • 1DLR entered into equity distribution agreements with Citigroup, Merrill Lynch, and Credit Suisse.
  • 2The company can issue and sell up to $400 million of common stock through these agreements.
  • 3Sales will be conducted as "at the market" offerings on the NYSE or through market makers.
  • 4Proceeds will be used for general corporate purposes, including credit facility repayment, property acquisition, and development funding.
  • 5This action provides DLR with a flexible capital-raising mechanism.
  • 6The shares are being issued under an existing automatic shelf registration statement on Form S-3 filed in May 2009.

Frequently Asked Questions

The primary purpose is to provide Digital Realty Trust (DLR) with the ability to raise up to $400 million in capital by selling its common stock in "at the market" offerings. The proceeds are intended for strategic uses such as reducing debt, acquiring new properties, and funding development projects.

The shares will be sold through designated agents (Citigroup, Merrill Lynch, Credit Suisse) on the New York Stock Exchange or through market makers, at prevailing market prices. This method is known as an "at the market" offering.

The net proceeds will be contributed to DLR's operating partnership, which plans to use them to temporarily repay borrowings under the company's revolving credit facility, acquire additional properties, fund development and redevelopment opportunities, and for general corporate purposes.

These are new shares of common stock being issued by DLR. The offering is being made pursuant to an existing automatic shelf registration statement on Form S-3 filed earlier in 2009.