What was the primary purpose of issuing these Swiss Franc Notes?

The primary purpose was to raise capital to finance or refinance eligible green projects, such as green buildings, energy and resource efficiency, and renewable energy initiatives. This aligns with Digital Realty's commitment to sustainability and ESG principles.

Who is directly liable for these notes?

The notes were issued by Digital Intrepid Holding B.V., an indirect wholly owned holding and finance subsidiary. However, Digital Realty Trust, Inc. and its operating partnership provide full and unconditional guarantees for these notes, making them ultimately liable.

What are the maturity dates and interest rates for these notes?

There are two series of notes: CHF275 million of 0.20% Guaranteed Notes due December 15, 2026, and CHF270 million of 0.55% Guaranteed Notes due April 16, 2029. The interest rates are notably low.

Were these notes offered to U.S. investors?

No, the Swiss Franc Notes were sold outside the United States in reliance on Regulation S under the Securities Act of 1933. They have not been registered under the Securities Act and may not be offered or sold within the United States or to U.S. persons without registration or an applicable exemption.

DLR 8-K: Material Agreements, Financial Events & More

Summary

Digital Realty Trust, Inc. (DLR) announced the closing of a private placement of CHF275 million aggregate principal amount of 0.20% Guaranteed Notes due 2026 and CHF270 million aggregate principal amount of 0.55% Guaranteed Notes due 2029. These Swiss Franc Notes, issued by its subsidiary Digital Intrepid Holding B.V., are guaranteed by Digital Realty Trust, Inc. and the operating partnership. The net proceeds, approximately CHF542.3 million, are intended to finance or refinance eligible green projects, with temporary uses including repayment of revolving credit facilities, acquisitions, development funding, and working capital. The offering was conducted outside the United States in reliance on Regulation S. The notes are senior unsecured obligations and carry relatively low interest rates, reflecting favorable market conditions for the company. The terms include covenants limiting indebtedness and requiring maintenance of unencumbered assets. This issuance provides Digital Realty with additional long-term financing, specifically earmarked for its sustainability initiatives, demonstrating a commitment to environmental, social, and governance (ESG) principles.

Key Highlights

1DLR's subsidiary, Digital Intrepid Holding B.V., successfully issued CHF545 million in aggregate principal amount of senior unsecured notes (CHF275M of 0.20% Notes due 2026 and CHF270M of 0.55% Notes due 2029).
2The notes are guaranteed by Digital Realty Trust, Inc. and its operating partnership.
3Net proceeds from the offering amounted to approximately CHF542.3 million.
4Proceeds are earmarked for financing or refinancing Eligible Green Projects, aligning with the company's sustainability strategy.
5Temporary use of proceeds may include repaying credit facilities, acquisitions, development, and general corporate purposes.
6The notes were issued outside the United States under Regulation S, indicating a specific investor base and regulatory compliance.
7The interest rates on the notes are notably low (0.20% and 0.55%), suggesting favorable borrowing costs for DLR.

DIGITAL REALTY TRUST, INC. 8-K Report, Material Agreement (Jul 15, 2021)

Summary

Key Highlights

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