Summary
Digital Realty Trust, Inc. (DLR) announced on July 2, 2020, that its operating partnership will redeem all outstanding 3.625% Notes due 2022 and 3.950% Notes due 2022. The total principal amount to be redeemed is $800 million ($300 million of the 3.625% Notes and $500 million of the 3.950% Notes). The redemption is scheduled for August 3, 2020. This redemption is significant as it will retire these specific debt instruments entirely, meaning no further principal payments will be due on these notes. Investors holding these notes will receive the principal amount plus accrued interest, at a premium above par for both note series. This action suggests DLR may be leveraging favorable market conditions or restructuring its debt to potentially lower interest costs or improve its balance sheet.
Key Highlights
- 1Digital Realty's operating partnership will redeem $300 million in 3.625% Notes due 2022 and $500 million in 3.950% Notes due 2022.
- 2The total principal amount being redeemed is $800 million.
- 3The redemption date is set for August 3, 2020.
- 4Both the 3.625% Notes and 3.950% Notes will be fully retired, with no remaining principal outstanding after redemption.
- 5Redemption prices are above the principal amount (106.0018% for 3.625% notes and 106.0306% for 3.950% notes), plus accrued interest.
- 6The company has issued formal notices of redemption to noteholders.