8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Aug 7, 2017)

Filed August 7, 2017For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced on August 7, 2017, the successful completion of two significant capital raises. The company, through its operating partnership Digital Realty Trust, L.P., issued $1.35 billion in aggregate principal amount of senior notes, split between $350 million of 2.750% Notes due 2023 and $1 billion of 3.700% Notes due 2027. These notes are fully guaranteed by the parent company, DLR. Concurrently, DLR completed an underwritten public offering of 8,000,000 shares of its 5.250% Series J Cumulative Redeemable Preferred Stock. These offerings represent a substantial influx of capital, likely intended for growth initiatives, debt refinancing, or general corporate purposes. Investors should note the terms of these new debt and preferred stock issuances, including their respective interest rates and maturity dates, as they will impact the company's leverage and cost of capital. The filings also include legal opinions supporting the validity of these issuances.

Key Highlights

  • 1Digital Realty Trust, L.P. completed a $350 million offering of 2.750% Notes due 2023.
  • 2Digital Realty Trust, L.P. completed a $1 billion offering of 3.700% Notes due 2027.
  • 3Both note issuances are fully and unconditionally guaranteed by Digital Realty Trust, Inc.
  • 4Digital Realty Trust, Inc. completed an offering of 8,000,000 shares of 5.250% Series J Cumulative Redeemable Preferred Stock.
  • 5The offerings were made under effective shelf registration statements filed on July 28, 2017.
  • 6Legal opinions from Venable LLP and Latham & Watkins LLP regarding the validity of the notes and preferred stock were filed as exhibits.

Frequently Asked Questions

Digital Realty raised a total of $1.35 billion through the issuance of senior notes ($350 million in 2023 Notes and $1 billion in 2027 Notes) and an unspecified amount from the preferred stock offering (8,000,000 shares of 5.250% Series J Preferred Stock).

The debt consists of $350 million of 2.750% Notes due 2023 and $1 billion of 3.700% Notes due 2027. Both are guaranteed by the parent company, Digital Realty Trust, Inc.

While the filing does not explicitly state the purpose, such capital raises by real estate investment trusts are typically used for property acquisitions, development projects, refinancing existing debt, or general corporate purposes to support ongoing operations and growth.

The issuance of 8,000,000 shares of 5.250% Series J Cumulative Redeemable Preferred Stock provides Digital Realty with additional equity capital and locks in a specific dividend rate of 5.250% for this series of preferred stock.