Summary
This Form 8-K filing by Digital Realty Trust, Inc. (DLR) on December 12, 2012, primarily serves to disclose an adjustment to the exchange rate for its 5.50% Exchangeable Senior Debentures due 2029 and the conversion rate for its 5.500% Series D Cumulative Convertible Preferred Stock. Investors should note these adjustments as they impact the potential equity dilution and the value associated with these securities. The company is providing this information in accordance with Regulation FD, ensuring timely and broad dissemination of material information.
Key Highlights
- 1Disclosure of an adjusted exchange rate for the 5.50% Exchangeable Senior Debentures due 2029.
- 2Disclosure of an adjusted conversion rate for the 5.500% Series D Cumulative Convertible Preferred Stock.
- 3The adjusted rates are effective as of December 12, 2012.
- 4The 5.50% Exchangeable Senior Debentures due 2029 will now convert at a rate of 24.7390 shares per $1,000 principal amount.
- 5The 5.500% Series D Cumulative Convertible Preferred Stock will now convert at a rate of 0.6360 shares per $25.00 liquidation preference.
- 6The filing is furnished under Item 7.01 (Regulation FD Disclosure).
- 7Exhibit 99.1 contains the form of the Notice of Adjustment to Exchange Rate.
Frequently Asked Questions
The main purpose of this 8-K filing is to formally notify holders of Digital Realty Trust's (DLR) 5.50% Exchangeable Senior Debentures due 2029 and holders of its 5.500% Series D Cumulative Convertible Preferred Stock about adjustments to the respective exchange and conversion rates.
As of December 12, 2012, the exchange rate for the 5.50% Exchangeable Senior Debentures due 2029 is 24.7390 shares per $1,000 principal amount. The conversion rate for the 5.500% Series D Cumulative Convertible Preferred Stock is 0.6360 shares per $25.00 liquidation preference.
While the specific reasons for the adjustment are not detailed in the provided text, such adjustments to exchangeable securities and convertible preferred stock are typically triggered by certain corporate events or conditions outlined in the terms of those securities, such as dividend payments, stock splits, or other dilutive events. The filing itself doesn't specify the exact trigger.
No, this filing is specifically for a Regulation FD disclosure regarding adjustments to exchange and conversion rates. It does not provide updates on financial performance or outlook. The 'Forward-Looking Statements' section does include general risks and uncertainties that could affect future results, but it does not relate to a specific event or change discussed in the core of this 8-K.