01—Abstract
Summary
Summary of the 8-K filed September 13, 2024. Cited figures are marked; the original filing is the authoritative source.
Digital Realty Trust, Inc. (DLR) announced the issuance and sale of €850 million in aggregate principal amount of 3.875%a Guaranteed Notes due 2033 by its indirect wholly owned finance subsidiary, Digital Dutch Finco B.V.
These senior unsecured notes are fully and unconditionally guaranteed by DLR and its operating partnership. The offering, conducted outside the United States under Regulation S, generated net proceeds of approximately €842.7 million after expenses. These proceeds are intended to be allocated to finance or refinance eligible green projects, including renewable energy, energy efficiency, and sustainable building initiatives.
Pending allocation to green projects, the net proceeds may be used for temporary repayment of revolving credit facilities, property or business acquisitions, funding development opportunities, investments in interest-bearing accounts and securities, or for general corporate purposes such as repaying other debt or repurchasing outstanding securities. The notes carry an interest rate of 3.875%b and mature on September 13, 2033. The indenture governing the notes includes restrictive covenants concerning additional indebtedness and unencumbered assets.
02—Key points
Key Highlights
- Issuance of €850 million in 3.875% Guaranteed Notes due 2033 by Digital Dutch Finco B.V.
- Notes are senior unsecured obligations, fully guaranteed by Digital Realty Trust, Inc. and its operating partnership.
- Offering was conducted outside the U.S. under Regulation S.
- Net proceeds of approximately €842.7 million raised.
- Proceeds earmarked for financing or refinancing eligible green projects.
- Pending green project allocation, proceeds may be used for debt repayment, acquisitions, development, or general corporate purposes.
- Maturity date for the notes is September 13, 2033.
03—Questions
Frequently Asked Questions
What is the purpose of the new Euro Notes?
The primary purpose of the Euro Notes is to finance or refinance eligible green projects. These include initiatives related to renewable energy, energy efficiency, pollution prevention, sustainable land use, biodiversity, clean transportation, sustainable water management, climate adaptation, and green building projects. Pending allocation to these projects, the proceeds can be used for general corporate purposes, including debt repayment and acquisitions.
Who is guaranteeing these notes?
The Euro Notes are fully and unconditionally guaranteed by Digital Realty Trust, Inc. (DLR) and its operating partnership, Digital Realty Trust, L.P.
What are the key terms of the Euro Notes?
The Euro Notes have an aggregate principal amount of €850 million, bear interest at a rate of 3.875% per annum, and mature on September 13, 2033. They are senior unsecured obligations of Digital Dutch Finco B.V. The indenture includes covenants that limit the company's ability to incur additional indebtedness and require the maintenance of unencumbered assets.
Are these notes subject to U.S. withholding taxes?
Payments of principal and interest are generally made free of U.S. withholding taxes, unless required by law. In such cases, Digital Dutch Finco B.V. is obligated to pay 'additional amounts' to ensure holders who are not U.S. persons receive the net amount due, subject to certain exceptions.
04—Continue