8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Dec 5, 2022)

Filed December 5, 2022For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) announced through an 8-K filing on December 5, 2022, that its operating partnership, Digital Realty Trust, L.P., entered into an underwriting agreement on November 29, 2022, for a registered public offering of $350 million in aggregate principal amount of 5.550% senior unsecured notes due 2028. These notes represent a further issuance of existing notes, will be fully and unconditionally guaranteed by Digital Realty Trust, Inc., and will be treated as a single series, fungible with the initial issuance. This additional debt issuance increases the total outstanding principal amount of the 5.550% notes due 2028 to $900 million. The new notes are priced at 99.208% of par, carrying a coupon of 5.550%, and mature on January 15, 2028. The offering is anticipated to close on December 6, 2022, subject to customary conditions. Investors should note that while this secures additional funding for Digital Realty, it also increases the company's overall debt obligations.

Key Highlights

  • 1Digital Realty Trust, L.P. is issuing $350 million of 5.550% senior unsecured notes due 2028.
  • 2These notes are a further issuance and will be fungible with the existing $550 million of 5.550% notes due 2028.
  • 3The total outstanding principal amount of the 5.550% notes due 2028 will be $900 million upon closing.
  • 4The notes are guaranteed by Digital Realty Trust, Inc.
  • 5The offering is expected to close on December 6, 2022.
  • 6The notes were issued at a slight discount to par (99.208%).

Frequently Asked Questions

The filing does not explicitly state the purpose of the note issuance. However, debt offerings are typically used to fund general corporate purposes, including capital expenditures, acquisitions, refinancing existing debt, or other business initiatives.

This issuance adds $350 million to Digital Realty's outstanding debt, specifically to the 5.550% notes due 2028. The total principal for this note series will now be $900 million. Investors should review the company's overall leverage and debt-to-equity ratios in its financial statements for a complete picture.

The notes have a coupon rate of 5.550% and were issued at 99.208% of par. This means the effective yield to maturity will be slightly higher than 5.550% due to the discount at which they were issued.

The notes are senior unsecured obligations of Digital Realty Trust, L.P. However, they are fully and unconditionally guaranteed by Digital Realty Trust, Inc.