Summary
Digital Realty Trust, Inc. (DLR) announced on June 16, 2020, through its indirect wholly owned finance subsidiary, Digital Dutch Finco B.V., the commencement of an offering of Euro-denominated Guaranteed Notes due 2031. These senior unsecured notes will be fully guaranteed by Digital Realty Trust, Inc. and its operating partnership, providing investors with an additional layer of credit support. The proceeds from this offering are intended for various strategic uses, including repaying existing revolving credit facility borrowings, funding property acquisitions, development projects, and investments consistent with REIT qualification. This move signals Digital Realty's proactive approach to managing its capital structure and pursuing growth opportunities in the data center real estate sector, while also providing flexibility for debt management and working capital needs.
Key Highlights
- 1Commencement of offering for Euro-denominated Guaranteed Notes due 2031 by Digital Dutch Finco B.V.
- 2Notes are senior unsecured obligations fully guaranteed by Digital Realty Trust, Inc. and its operating partnership.
- 3Offering is conducted outside the United States under Regulation S.
- 4Net proceeds intended for revolving credit facility repayment, property acquisitions, development funding, and general corporate purposes.
- 5Proceeds will also support investments consistent with REIT qualification and potentially other debt repurchases or retirements.
- 6Final terms of the Euro Notes to be determined at pricing.
- 7Consummation of the offering is subject to market and other conditions.