Summary
Digital Realty Trust, Inc. (DLR) announced an extension of its forward equity contracts with Bank of America, N.A. and Citibank, N.A. The maturity date for these agreements has been pushed back from September 27, 2019, to September 25, 2020. This extension provides DLR with additional flexibility regarding the potential issuance of approximately 9.775 million shares of common stock in exchange for cash proceeds.
Key Highlights
- 1Extension of forward equity contracts with Bank of America and Citibank.
- 2Maturity date extended from September 27, 2019, to September 25, 2020.
- 3Potential issuance of 9,775,000 shares of common stock under these agreements.
- 4DLR retains the right to elect cash or net share settlement.
- 5The company intends to deliver shares in exchange for cash proceeds at the forward sale price.
- 6This move offers DLR greater flexibility in managing its equity issuance and capital structure.
Frequently Asked Questions
The primary purpose of extending the forward equity contracts is to provide Digital Realty Trust with greater flexibility in managing its capital needs. By pushing back the maturity date, the company gains additional time to decide on the optimal timing and method (cash vs. share settlement) for potentially issuing up to 9,775,000 shares of its common stock.
The new maturity date for the forward equity contracts is September 25, 2020.
The agreements involve an aggregate of 9,775,000 shares of Digital Realty Trust's common stock.
No, it does not guarantee issuance. The company intends to deliver shares, subject to certain conditions and its right to elect cash or net share settlement. This extension primarily offers DLR strategic flexibility rather than mandating an immediate share issuance.