What is the primary purpose of this €750 million note issuance?

The primary purpose is to raise capital to fund various corporate needs, including temporarily repaying borrowings under the operating partnership's global revolving credit facilities, acquiring additional properties or businesses, funding development opportunities, and for general corporate purposes such as working capital or potential repayment of other debt.

Are these notes guaranteed by Digital Realty Trust, Inc. directly?

Yes, the Euro Notes are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership. This provides an additional layer of security for the noteholders.

Where were these notes offered and to whom?

The notes were sold 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 absent registration or an applicable exemption.

What are the key terms of the Euro Notes, such as interest rate and maturity?

The Euro Notes have an aggregate principal amount of €750 million, bear interest at a rate of 1.375% per annum, and mature on July 18, 2032. Interest is payable annually on July 18.

DLR 8-K: Material Agreements & Financial Events

Summary

Digital Realty Trust, Inc. (DLR), through its indirect wholly owned subsidiary Digital Intrepid Holding B.V., has successfully issued €750 million in 1.375% Guaranteed Notes due 2032. These notes are senior unsecured obligations, fully guaranteed by DLR and its operating partnership, and were sold outside the United States. The net proceeds, approximately €737.5 million after expenses, are earmarked for several strategic purposes, including repaying existing revolving credit facilities, funding property and business acquisitions, development projects, and general corporate needs. This move indicates DLR's proactive approach to managing its capital structure and pursuing growth opportunities in the data center sector. The issuance of these Euro Notes at an attractive interest rate highlights DLR's access to capital markets and its ability to secure favorable financing terms. The use of proceeds is diversified, suggesting a balanced approach to debt management, operational funding, and strategic investments. Investors should note the long-term nature of this debt (10-year maturity) and the associated covenants that may influence future financial flexibility, such as limitations on additional indebtedness and requirements for unencumbered assets.

Key Highlights

1DLR subsidiary Digital Intrepid Holding B.V. issued €750 million in 1.375% Guaranteed Notes due 2032.
2The notes are senior unsecured obligations, guaranteed by Digital Realty Trust, Inc. and its operating partnership.
3Proceeds of approximately €737.5 million will be used for debt repayment, acquisitions, development, and general corporate purposes.
4The notes were sold outside the United States in reliance on Regulation S.
5The issuance bears an interest rate of 1.375% per annum, with a maturity date of July 18, 2032.
6The Indenture includes restrictive covenants regarding incurring additional indebtedness and maintaining unencumbered assets.
7The company has the option to redeem the notes under specific conditions, including a make-whole premium or under tax-related events.

DIGITAL REALTY TRUST, INC. 8-K Report, Material Agreement (Jan 18, 2022)

Summary

Key Highlights

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