Summary
Digital Realty Trust, Inc. (DLR) announced on January 15, 2013, through its wholly-owned subsidiary Digital Stout Holding, LLC, the pricing of an offering of £400 million of its 4.250% Guaranteed Notes due 2025. These notes are senior unsecured obligations and are guaranteed by the parent company and its L.P. entity. The offering is being conducted solely outside the United States under Regulation S, with no registration under the U.S. Securities Act. This move allows Digital Realty to raise significant capital in the international market at a fixed interest rate. The funds are expected to be utilized for general corporate purposes, potentially supporting ongoing development projects or refinancing existing debt. Investors should note the notes' non-U.S. offering status and the fact that they are unsecured debt, albeit with full guarantees from the primary DLR entities.
Key Highlights
- 1Priced £400 million of 4.250% Guaranteed Notes due 2025.
- 2Offering conducted by wholly-owned subsidiary, Digital Stout Holding, LLC.
- 3Notes are senior unsecured obligations.
- 4Fully and unconditionally guaranteed by Digital Realty Trust, Inc. and Digital Realty Trust, L.P.
- 5Offered exclusively outside the United States under Regulation S.
- 6Notes have not been registered under the U.S. Securities Act and cannot be offered or sold to U.S. persons without registration or an exemption.
- 7Settlement of the offering is expected on January 18, 2013.