Summary
Digital Realty Trust, Inc. (DLR) announced the closing of a CHF250 million debt offering on March 30, 2022, through its subsidiary, Digital Intrepid Holding B.V. The offering consisted of CHF100 million in 0.600% Guaranteed Notes due 2023 and CHF150 million in 1.700% Guaranteed Notes due 2027. These notes are senior unsecured obligations guaranteed by DLR and its operating partnership, issued outside the United States. The net proceeds of approximately CHF248.6 million are intended for various corporate purposes, including repaying revolving credit facilities, funding acquisitions, development projects, and general working capital, aligning with DLR's REIT status requirements. This financing activity provides DLR with long-term capital at attractive interest rates, especially for the 2027 notes, given the relatively low coupon rates. The use of proceeds is strategic, supporting growth initiatives and strengthening the company's financial flexibility. Investors should note the specific terms, including restrictive covenants related to indebtedness and unencumbered assets, and the events of default outlined in the notes' conditions.
Key Highlights
- 1Digital Realty subsidiary, Digital Intrepid Holding B.V., successfully issued CHF250 million in guaranteed notes.
- 2The offering comprises CHF100 million of 0.600% notes due 2023 and CHF150 million of 1.700% notes due 2027.
- 3The notes are senior unsecured obligations, fully guaranteed by Digital Realty Trust, Inc. and its operating partnership.
- 4Net proceeds of approximately CHF248.6 million will be used for debt repayment, acquisitions, development, and general corporate purposes.
- 5The offering was conducted outside the United States under Regulation S.
- 6The notes include restrictive covenants on incurring additional indebtedness and maintaining unencumbered assets.
- 7Key events of default are detailed, including payment defaults, covenant breaches, and bankruptcy events.