Summary
Digital Realty Trust, Inc. (DLR) filed an 8-K on September 14, 2020, to announce significant financing activities. The company has priced offerings for two series of Euro Notes: €750 million in 1.000% Guaranteed Notes due 2032 and €300 million in Floating Rate Guaranteed Notes due 2022. These offerings, being conducted outside the United States under Regulation S, are senior unsecured obligations guaranteed by DLR and its operating partnership. The company intends to use the proceeds from the 2032 Notes to finance green projects and the proceeds from the 2022 Notes to potentially redeem outstanding GBP Notes and for general corporate purposes. In conjunction with these offerings, DLR also announced the redemption of its £300 million aggregate principal amount of 4.750% Guaranteed Notes due 2023, set for October 14, 2020. The redemption price is at a premium to par, including accrued interest. These actions demonstrate DLR's active management of its debt portfolio, aimed at optimizing its capital structure and funding future growth, particularly in sustainable development.
Key Highlights
- 1Digital Realty priced two new Euro Note offerings: €750 million of 1.000% Notes due 2032 and €300 million of Floating Rate Notes due 2022.
- 2The Euro Notes are senior unsecured obligations, guaranteed by Digital Realty Trust, Inc. and its operating partnership.
- 3The company announced the redemption of its entire outstanding £300 million of 4.750% Guaranteed Notes due 2023, scheduled for October 14, 2020.
- 4Proceeds from the 2032 Euro Notes are earmarked for financing or refinancing eligible green building, energy efficiency, and renewable energy projects.
- 5Proceeds from the 2022 Euro Notes are intended to fund the redemption of the GBP Notes or for general corporate purposes, including capital expenditures and debt repayment.
- 6Both offerings are being conducted outside the United States under Regulation S.
- 7The settlement for the Euro Notes offerings is expected on September 23, 2020.