8-KMaterial Agreements

DIGITAL REALTY TRUST, INC. 8-K Report, Material Agreement (Jul 2, 2010)

Filed July 2, 2010For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced via this 8-K filing on July 2, 2010, significant amendments to its credit facilities that expand its borrowing capacity. Specifically, Amendment No. 3 to the Revolving Credit Agreement allows DLR's operating partnership to include eligible unencumbered international assets in its borrowing base, up to 25% of the total. This move provides greater financial flexibility to support outstanding unsecured debt by diversifying the collateral base beyond U.S. properties. Furthermore, a related amendment to the Note Purchase and Private Shelf Agreement mirrors these changes, ensuring consistent access to capital. These amendments are investor-positive as they enhance DLR's financial maneuverability and potential for future growth by tapping into a broader pool of assets for financing. The ability to leverage international assets underscores the company's global reach and operational diversification.

Key Highlights

  • 1DLR's operating partnership entered into Amendment No. 3 to its Revolving Credit Agreement on June 28, 2010.
  • 2The amendment allows for the inclusion of eligible unencumbered international assets in the borrowing base for the revolving credit facility.
  • 3International assets can now constitute up to 25% of the borrowing base.
  • 4Assets in Spain and Singapore are specifically limited to a 10% contribution to the borrowing base.
  • 5As of June 28, 2010, the total borrowing base of unencumbered assets stood at approximately $2.9 billion.
  • 6A similar amendment (Amendment No. 1) was made to the Note Purchase and Private Shelf Agreement on July 2, 2010.
  • 7These amendments enhance DLR's financial flexibility and ability to support its unsecured debt obligations.

Frequently Asked Questions

The main purpose of the amendments is to increase DLR's borrowing capacity by allowing its operating partnership to include eligible unencumbered international assets in its borrowing base for its revolving credit facility. This provides greater financial flexibility and supports outstanding unsecured debt.

The international assets eligible for the borrowing base include properties located in Canada, England, Ireland, Wales, France, Spain, the Netherlands, Singapore, and Australia.

Yes, international assets can comprise up to 25% of the borrowing base. Additionally, assets located specifically in Spain and Singapore are further limited to no more than 10% of the borrowing base.

As of June 28, 2010, DLR's borrowing base, consisting of unencumbered assets, totaled approximately $2.9 billion.