Summary
Digital Realty Trust, Inc. (DLR) announced on March 4, 2019, its entry into an underwriting agreement for an underwritten public offering of 8,000,000 shares of its 5.850% Series K cumulative redeemable preferred stock. The offering is expected to close on March 13, 2019, subject to customary closing conditions. The company has also granted the underwriters an option to purchase an additional 1,200,000 shares to cover potential over-allotments. This offering, utilizing an effective shelf registration statement, represents a strategic move by Digital Realty to raise capital. Investors should note that while the company has not explicitly stated the intended use of proceeds in this filing, such preferred stock offerings are typically used to fund general corporate purposes, including acquisitions, development projects, or debt repayment. The inclusion of forward-looking statements highlights the inherent risks and uncertainties associated with the offering and market conditions, which could impact the company's actual future results.
Key Highlights
- 1Digital Realty announced an underwritten public offering of 8,000,000 shares of 5.850% Series K cumulative redeemable preferred stock.
- 2The offering is expected to close on March 13, 2019.
- 3The company granted an over-allotment option for up to 1,200,000 additional shares of Series K Preferred Stock to the underwriters.
- 4The offering is being conducted under an effective shelf registration statement filed on September 22, 2017.
- 5A prospectus supplement dated March 4, 2019, was filed with the SEC.
- 6The filing includes a cautionary statement regarding forward-looking statements and associated risks and uncertainties.