Summary
Digital Realty Trust, Inc. (DLR) has announced the results of a tender offer and subsequent redemption for its 5.875% Senior Notes due 2020. The company successfully tendered and accepted for purchase approximately 70.02% of the outstanding notes, totaling $350.123 million. To fund this tender offer and the remaining redemption, DLR utilized proceeds from a recent issuance of Euro-denominated notes. Following the tender offer, the company announced its intention to redeem the remaining outstanding Senior Notes due 2020 on February 19, 2019, thereby retiring all of this specific debt issuance. This move signifies a proactive debt management strategy by Digital Realty, aiming to refinance existing debt with new, likely lower-cost, Euro-denominated debt. Investors should note the successful execution of this debt restructuring, which reduces outstanding debt and potentially lowers future interest expenses. The company has provided detailed information on the tender offer results, the redemption plan, and the funding source, ensuring transparency for stakeholders.
Key Highlights
- 1Digital Realty completed a tender offer for its 5.875% Senior Notes due 2020, accepting $350.123 million (70.02%) of the $500 million outstanding principal.
- 2The company will redeem the remaining $149.877 million in Senior Notes due 2020 on February 19, 2019, fully retiring this debt issuance.
- 3The tender offer and redemption were funded by proceeds from a recent issuance of Euro-denominated 2.500% Guaranteed Notes due 2026.
- 4The purchase price in the tender offer was $1,022.81 per $1,000 principal amount, plus accrued interest.
- 5The redemption price for the remaining notes is $1,020.31 per $1,000 principal amount, plus accrued interest.
- 6This action represents a debt refinancing strategy to potentially reduce interest expense by replacing older debt with newer, Euro-denominated debt.
- 7The company provided comprehensive details on the tender offer results and redemption plans, ensuring transparency.