Summary
On September 23, 2020, Digital Realty Trust, Inc. (DLR), through its subsidiary Digital Dutch Finco B.V., successfully issued and sold €750 million of 1.000% Guaranteed Notes due 2032 and €300 million of Floating Rate Guaranteed Notes due 2022. These notes are senior unsecured obligations of the subsidiary and are fully guaranteed by Digital Realty Trust, Inc. and its operating partnership, providing investors with a strong credit backing. The offering was conducted outside the United States under Regulation S. The net proceeds from the 2032 Notes are earmarked for financing or refinancing eligible green projects, including development and redevelopment of energy-efficient and renewable energy initiatives. Any unallocated proceeds will be used for general corporate purposes, including debt repayment and REIT-qualifying investments. The proceeds from the 2022 Notes are intended for the redemption of Digital Stout Holding, LLC's 4.750% Guaranteed Notes due 2023 or for general corporate uses, similar to the 2032 Notes.
Key Highlights
- 1Digital Realty Trust, Inc. (DLR) raised €1.05 billion through the issuance of Euro Notes via its subsidiary Digital Dutch Finco B.V.
- 2The issuance comprises €750 million in 1.000% Guaranteed Notes due 2032 and €300 million in Floating Rate Guaranteed Notes due 2022.
- 3Both note series are guaranteed by DLR and its operating partnership, enhancing investor security.
- 4Net proceeds from the 2032 Notes are designated for financing eligible green projects, aligning with sustainability initiatives.
- 5Net proceeds from the 2022 Notes are primarily intended for the redemption of existing 4.750% Guaranteed Notes due 2023.
- 6The notes are senior unsecured obligations of the issuing subsidiary and were sold outside the U.S. under Regulation S.
- 7Restrictive covenants in the indentures include limitations on incurring additional indebtedness and requirements to maintain unencumbered assets.