8-KFinancial Events

DIGITAL REALTY TRUST, INC. 8-K Report, Financial Obligation (Mar 7, 2019)

Filed March 7, 2019For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) filed an 8-K on March 7, 2019, to disclose the issuance of new debt. Specifically, the company's subsidiary, Digital Stout Holding, LLC, issued an additional £150,000,000 aggregate principal amount of 3.750% Guaranteed Notes due 2030. Concurrently, another subsidiary, Digital Euro Finco, LLC, issued €225,000,000 aggregate principal amount of 2.500% Guaranteed Notes due 2026. These issuances are part of Digital Realty's ongoing strategy to manage its capital structure, fund growth initiatives, and maintain financial flexibility. The proceeds from the GBP Notes will be used for general corporate purposes, including debt repayment and acquisitions, while the proceeds from the Euro Notes are earmarked for financing or refinancing eligible green projects, reflecting the company's commitment to sustainability.

Key Highlights

  • 1Issuance of £150,000,000 in additional 3.750% Guaranteed Notes due 2030 by Digital Stout Holding, LLC.
  • 2Issuance of €225,000,000 in 2.500% Guaranteed Notes due 2026 by Digital Euro Finco, LLC.
  • 3Both note issuances are senior unsecured obligations of the respective subsidiaries and are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.
  • 4Proceeds from the GBP Notes will be used for general corporate purposes, including repaying credit facilities, acquisitions, and development.
  • 5Proceeds from the Euro Notes are intended to finance or refinance eligible green building, energy efficiency, and renewable energy projects.
  • 6The notes were sold in reliance on Regulation S, outside the United States, and are not registered under the Securities Act.
  • 7Both indentures contain restrictive covenants related to incurring additional indebtedness and maintaining unencumbered assets.

Frequently Asked Questions

The primary purpose is to secure financing for Digital Realty's ongoing operations and growth. The proceeds from the GBP Notes are for general corporate purposes, including debt repayment and acquisitions. The Euro Notes proceeds are specifically designated for financing or refinancing eligible green projects, aligning with sustainability goals.

Both the GBP Notes and the Euro Notes are senior unsecured obligations of their respective issuing subsidiaries. However, they are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.

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

The additional GBP Notes mature on October 17, 2030, and bear interest at 3.750% per annum. The Euro Notes mature on January 16, 2026, and bear interest at 2.500% per annum.