8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Dec 6, 2022)

Filed December 6, 2022For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, L.P. (DLR) announced the completion of an underwritten public offering of an additional $350 million in aggregate principal amount of its 5.550% Notes due 2028. These notes are fungible with and will be treated as a single series with the initial issuance of $550 million of the same notes, bringing the total outstanding principal of this series to $900 million. This offering represents a move to raise capital, with the proceeds likely intended for general corporate purposes, including potential debt repayment or future investments. Investors should note that these notes are unsecured senior obligations of Digital Realty Trust, L.P. and are guaranteed by Digital Realty Trust, Inc. While they rank equally with other unsecured senior indebtedness, they are effectively subordinated to any secured debt and liabilities of DLR's subsidiaries. The notes bear a coupon of 5.550% and mature on January 15, 2028. The company retains the option to redeem the notes prior to maturity under specific conditions, including a "Par Call" option one month before maturity.

Key Highlights

  • 1Completed a $350 million public offering of 5.550% Notes due 2028.
  • 2These additional notes are fungible with and will be combined with the previously issued $550 million of the same notes, totaling $900 million in principal for this series.
  • 3The notes are unsecured senior obligations of Digital Realty Trust, L.P., guaranteed by Digital Realty Trust, Inc.
  • 4The notes rank equally with other unsecured senior indebtedness but are subordinated to secured debt and subsidiary liabilities.
  • 5The coupon rate for these notes is 5.550% per annum, with interest payable semi-annually.
  • 6Maturity date for the notes is January 15, 2028.
  • 7Digital Realty has the option to redeem the notes prior to maturity, with specific redemption terms outlined, including a "Par Call" option one month before maturity.

Frequently Asked Questions

The primary purpose of this filing is to report the completion of an underwritten public offering of an additional $350 million in aggregate principal amount of Digital Realty Trust, L.P.'s 5.550% Notes due 2028.

This offering increases the total principal amount of the 5.550% Notes due 2028 series to $900 million, as the new notes are fungible with and will be treated as a single series with the initial $550 million issuance. The proceeds are expected to be used for general corporate purposes, which may include refinancing existing debt or funding growth initiatives.

The notes carry a 5.550% annual interest rate, mature in January 2028, and are guaranteed by Digital Realty Trust, Inc. Key risks for investors include the unsecured nature of the notes, which makes them subordinate to secured debt, and the potential for the company to redeem the notes prior to maturity at its option, impacting future yield expectations.

The notes are general unsecured senior obligations of Digital Realty Trust, L.P. They will be treated as a single series of securities with the initial notes under the existing indenture, meaning they will have the same CUSIP number and will be fungible. The offering was made under an effective shelf registration statement and prospectus supplement.