8-KRegulation FDOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Regulation FD Disclosure (Feb 27, 2019)

Filed February 27, 2019For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust (DLR) announced on February 27, 2019, the pricing of an additional €225 million aggregate principal amount of 2.500% Guaranteed Notes due 2026. These notes are senior unsecured obligations of its subsidiary, Digital Euro Finco, LLC, and are fully guaranteed by DLR and its operating partnership. The offering is being conducted outside the United States under Regulation S and will be treated as a single series with previously issued notes of the same maturity and coupon. The company intends to allocate the net proceeds from this offering to finance or refinance eligible green projects, such as those related to green buildings, energy efficiency, and renewable energy. Pending this allocation, the proceeds may be used for general corporate purposes, including repaying existing debt under credit facilities, acquisitions, funding development, or other general corporate needs. This move highlights DLR's commitment to green initiatives while also providing flexibility for capital deployment.

Key Highlights

  • 1Digital Realty priced an additional €225 million of 2.500% Guaranteed Notes due 2026.
  • 2The offering is being conducted outside the U.S. under Regulation S.
  • 3The Euro Notes are senior unsecured obligations of Digital Euro Finco, LLC, fully guaranteed by DLR and its operating partnership.
  • 4Proceeds are intended to finance or refinance eligible green building, energy efficiency, and renewable energy projects.
  • 5The new notes will be fungible with previously issued 2.500% Guaranteed Notes due 2026.
  • 6Settlement for the Euro Notes is expected on March 6, 2019.

Frequently Asked Questions

The primary purpose of this Euro Note issuance is to raise capital that Digital Realty intends to allocate towards financing or refinancing eligible green projects, such as those focused on green buildings, energy efficiency, and renewable energy. This aligns with the company's sustainability initiatives.

Yes, the €225 million in Euro Notes are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership, Digital Realty Trust, L.P.

The Euro Notes are being sold exclusively outside the United States in reliance on Regulation S of the Securities Act. They have not been registered under the Securities Act and may not be offered or sold within the U.S. or to U.S. persons without registration or an applicable exemption.

Pending the allocation of proceeds to eligible green projects, Digital Realty may use them for general corporate purposes, including repaying borrowings under its global credit facilities, acquiring properties or businesses, funding development, working capital, or potentially for the repayment or repurchase of other outstanding debt or preferred stock.