Summary
Digital Realty Trust, Inc. (DLR) announced on January 12, 2021, through its indirect wholly owned subsidiary, Digital Intrepid Holding B.V., the issuance and sale of €1.0 billion aggregate principal amount of 0.625% Guaranteed Notes due 2031. These notes are senior unsecured obligations, fully and unconditionally guaranteed by DLR and its operating partnership. The offering, conducted outside the United States under Regulation S, generated net proceeds of approximately €988.3 million after expenses. The company intends to allocate these proceeds to finance or refinance eligible green projects, including development and redevelopment of green building, energy efficiency, and renewable energy initiatives. Pending allocation to these green projects, the net proceeds may be used for temporary repayment of revolving credit facilities, property or business acquisitions, funding development opportunities, investments in interest-bearing accounts and securities consistent with REIT status, and general corporate purposes including debt repayment. The issuance of these notes is detailed under Item 1.01 (Material Definitive Agreement) and Item 2.03 (Creation of a Direct Financial Obligation) of the 8-K filing.
Key Highlights
- 1DLR subsidiary issued €1.0 billion of 0.625% Guaranteed Notes due 2031.
- 2Net proceeds from the issuance are approximately €988.3 million.
- 3Proceeds are intended for financing or refinancing 'Eligible Green Projects'.
- 4The notes are senior unsecured obligations and are guaranteed by DLR and its operating partnership.
- 5The notes were issued outside the U.S. under Regulation S.
- 6The indenture includes restrictive covenants on incurring additional debt and maintaining unencumbered assets.
- 7Events of default are detailed, including payment defaults, covenant breaches, and bankruptcy events.