8-KOther Events

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Jan 4, 2022)

Filed January 4, 2022For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced through its subsidiary, Digital Intrepid Holding B.V., the commencement of an offering for Euro-denominated Guaranteed Notes. These notes will be senior unsecured obligations of the subsidiary, fully guaranteed by Digital Realty Trust, Inc. and its operating partnership. The offering is being conducted outside the United States under Regulation S and is subject to market and other customary conditions. Investors should note that these securities have not been registered under the Securities Act and cannot be offered or sold within the U.S. or to U.S. persons without registration or an exemption. The primary purpose of this offering is to secure capital for various strategic initiatives. These include repaying existing borrowings under the company's global revolving credit facilities, funding potential property or business acquisitions, investing in development projects, and for general corporate purposes. The proceeds may also be used for other debt repayment or equity/debt retirement, aligning with Digital Realty's strategy to maintain its REIT status.

Key Highlights

  • 1Digital Realty is initiating an offering of Euro-denominated Guaranteed Notes through its subsidiary.
  • 2The notes are guaranteed by Digital Realty Trust, Inc. and its operating partnership.
  • 3The offering is targeted at international investors, adhering to Regulation S.
  • 4Proceeds will be used for a mix of debt reduction, strategic investments (acquisitions/developments), and general corporate purposes.
  • 5The company aims to maintain its REIT qualification through prudent use of proceeds, including investments in interest-bearing accounts and securities.
  • 6The consummation of the offering is subject to market conditions and closing conditions.
  • 7Forward-looking statements are included, highlighting risks and uncertainties inherent in such offerings and general business operations.

Frequently Asked Questions

The primary purpose of the Euro Notes offering is to raise capital for several key areas: repaying borrowings under the company's revolving credit facilities, funding acquisitions of properties or businesses, investing in development projects, and for general corporate purposes such as working capital. It also allows for the potential repayment or redemption of other outstanding debt or equity securities.

The Euro Notes are being issued by Digital Intrepid Holding B.V., an indirect wholly owned holding and finance subsidiary of Digital Realty's operating partnership. The notes will be fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.

No, the Euro Notes are being offered only outside the United States in reliance on Regulation S. 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 unless registered or an exemption applies.

The risks include market conditions affecting the consummation of the offering, the actual use of proceeds, and general risks associated with the company's business and industry, such as legislative, regulatory, and competitive changes. The company emphasizes that many of these risks are detailed in its other SEC filings, such as its Form 10-K.