Summary
Digital Realty Trust, Inc. (DLR) announced on September 15, 2011, the successful completion of a public offering of 11,500,000 shares of its 7.000% Series E Cumulative Redeemable Preferred Stock. This offering, which included the full exercise of the underwriters' over-allotment option, generated net proceeds of approximately $277.9 million after deducting associated costs. The company utilized its effective shelf registration statement filed in May 2009 and amended in November 2010 to facilitate this issuance. This capital raise is significant for DLR as it strengthens the company's financial position and provides additional liquidity. Investors in the Series E Preferred Stock are offered a fixed 7.000% annual dividend, providing a stable income stream. The details of the offering, including the underwriting agreement and legal opinions, are filed as exhibits to this 8-K, underscoring transparency in the transaction.
Key Highlights
- 1Completed an underwritten public offering of 11,500,000 shares of 7.000% Series E Cumulative Redeemable Preferred Stock.
- 2Generated net proceeds of approximately $277.9 million from the offering, after underwriting discounts and expenses.
- 3Included the full exercise of the underwriters' over-allotment option, indicating strong demand.
- 4The offering was made under an effective shelf registration statement filed in May 2009 and amended in November 2010.
- 5The Series E Preferred Stock carries a fixed annual dividend rate of 7.000%.
- 6Filed the Underwriting Agreement and legal opinions from counsel Venable LLP as exhibits.