Summary
Digital Realty Trust, Inc. (DLR) announced the issuance of $500 million in aggregate principal amount of senior unsecured notes by its operating partnership, Digital Realty Trust, L.P. These notes carry a fixed interest rate of 5.875% and mature on February 1, 2020. The operating partnership received approximately 98.296% of the principal amount, indicating a slight discount to par value upon issuance. DLR's operating partnership is offering these notes in a private placement to qualified institutional buyers. These notes are general unsecured senior obligations and rank equally with other senior unsecured indebtedness of the operating partnership. Importantly, Digital Realty Trust, Inc. has fully and unconditionally guaranteed the obligations under these notes. The filing also details the redemption provisions, including a make-whole premium applicable before 90 days of maturity, and outlines various events of default that could lead to accelerated maturity, such as payment defaults or breaches of covenants. Investors should note the covenants and potential default triggers as part of their risk assessment.
Key Highlights
- 1DLR's operating partnership issued $500 million in aggregate principal amount of senior unsecured notes.
- 2The notes mature on February 1, 2020, and carry a fixed interest rate of 5.875% per annum.
- 3Digital Realty Trust, Inc. provides a full and unconditional guarantee for the notes.
- 4The issuance was conducted via a private placement to qualified institutional buyers.
- 5The notes were issued at a discount, with the purchase price being 98.296% of the principal amount.
- 6The filing outlines standard redemption terms, including a make-whole premium, and events of default.
- 7The notes are general unsecured senior obligations of the operating partnership.