8-KRegulation FDOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Regulation FD Disclosure (Oct 2, 2019)

Filed October 2, 2019For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced on October 2, 2019, the pricing of a new debt offering: €500 million in aggregate principal amount of 1.125% Guaranteed Notes due 2028. These Euro Notes are senior unsecured obligations of its finance 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. The net proceeds from this offering are earmarked for multiple strategic purposes, including repaying outstanding borrowings under the company's global revolving credit facility, acquiring new properties or businesses, funding development projects, and for general corporate purposes. This move indicates DLR's proactive approach to managing its capital structure, potentially optimizing its debt profile and providing flexibility for growth initiatives.

Key Highlights

  • 1Pricing of €500 million in 1.125% Guaranteed Notes due 2028.
  • 2Offering is being conducted by a wholly owned indirect finance subsidiary, Digital Euro Finco, LLC.
  • 3Notes are senior unsecured obligations and are fully guaranteed by Digital Realty Trust, Inc. and its operating partnership.
  • 4The offering is made only outside the United States under Regulation S.
  • 5Proceeds will be used to repay credit facility borrowings, fund acquisitions and development, and for general corporate purposes.
  • 6Indicates DLR's strategy to leverage international debt markets for capital management and growth.

Frequently Asked Questions

The primary purpose is to raise capital to repay outstanding borrowings under the company's global revolving credit facility, fund potential acquisitions and development opportunities, and for general corporate purposes. This suggests DLR is managing its debt and seeking funds for strategic expansion.

The Euro Notes are obligations of Digital Euro Finco, LLC, a subsidiary. However, Digital Realty Trust, Inc. and its operating partnership are providing full and unconditional guarantees, meaning they are fully responsible for the repayment of these notes.

No, these Euro Notes are being sold exclusively outside the United States in reliance on Regulation S. They have not been registered under the U.S. Securities Act and cannot be offered or sold within the U.S. or to U.S. persons without registration or an applicable exemption.

The notes carry a fixed annual interest rate of 1.125% and are due in 2028. Interest payments will be made annually in arrears, commencing on October 9, 2019.