8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Jul 2, 2012)

Filed July 2, 2012For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) filed a Form 8-K on July 2, 2012, to report on a significant equity offering. On June 26, 2012, the company and its operating partnership entered into an underwriting agreement to sell 10,000,000 shares of common stock, with an option for underwriters to purchase an additional 1,500,000 shares. This option was exercised in full. The offering was completed on July 2, 2012, resulting in the sale of a total of 11,500,000 shares. The company raised approximately $796.8 million in net proceeds after deducting underwriting discounts, commissions, and estimated offering expenses. These shares were offered under a shelf registration statement on Form S-3.

Key Highlights

  • 1Digital Realty Trust (DLR) completed a secondary offering of 11,500,000 shares of common stock.
  • 2The offering generated approximately $796.8 million in net proceeds for the company.
  • 3The equity offering was conducted through an underwriting agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc.
  • 4The shares were offered and sold under a prospectus supplement pursuant to an existing shelf registration statement (Form S-3).
  • 5The filing includes the underwriting agreement and legal opinions as exhibits.
  • 6This event indicates the company's strategy to raise capital, likely for expansion or debt reduction.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on the completion of a significant secondary offering of Digital Realty Trust's common stock and the net proceeds raised from this offering.

Digital Realty Trust raised approximately $796.8 million in net proceeds from the sale of 11,500,000 shares of common stock, after accounting for all underwriting fees and expenses.

A shelf registration statement (Form S-3 in this case) allows a company to register securities it plans to sell over a period of time. Mentioning it indicates that DLR had pre-registered these shares, streamlining the process for this offering.

The underwriters for this offering were Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc., acting as representatives for the several underwriters.