Summary
Digital Realty Trust, Inc. (DLR) announced on January 7, 2010, through its operating partnership, Digital Realty Trust, L.P., an agreement to sell $100 million in aggregate principal amount of senior unsecured term notes to Prudential Investment Management, Inc. and its affiliates. This issuance is part of a broader Note Purchase and Private Shelf Agreement established in July 2008. The new notes will be divided into two series: $50 million in Series D notes with a 4.57% interest rate and a five-year maturity, and $50 million in Series E notes with a 5.73% interest rate and a seven-year maturity.
Key Highlights
- 1Digital Realty Trust, L.P. entered into an agreement to issue $100 million in senior unsecured term notes.
- 2The notes are being sold to Prudential Investment Management, Inc. and certain of its affiliates.
- 3The issuance consists of two series: Series D ($50 million, 4.57% interest, 5-year maturity) and Series E ($50 million, 5.73% interest, 7-year maturity).
- 4Proceeds from the note issuance are designated for acquisitions and working capital.
- 5The closing of the note purchase is scheduled for January 20, 2010, subject to certain closing conditions.
- 6The agreement includes provisions for delayed delivery fees and cancellation fees if closing conditions are not met or the sale is cancelled.
- 7The notes are subject to covenants outlined in the existing Note Purchase and Private Shelf Agreement.
Frequently Asked Questions
The proceeds from the issuance of these senior unsecured term notes are intended to fund acquisitions and provide working capital for Digital Realty Trust, L.P.
The notes are split into two series: Series D with a $50 million principal, a 4.57% annual interest rate, and a five-year maturity; and Series E with a $50 million principal, a 5.73% annual interest rate, and a seven-year maturity.
The closing of the purchase and sale of these notes is scheduled to occur on January 20, 2010, provided that all closing conditions are satisfied.
If the operating partnership, Digital Realty Trust, L.P., does not satisfy the closing conditions and tender the notes by January 20, 2010, it will generally be liable for a delayed delivery fee. A cancellation fee may also apply if the closing is cancelled.