Summary
Digital Realty Trust, Inc. (DLR) has announced the commencement of an offering of Euro-denominated Guaranteed Notes by its indirect wholly owned finance subsidiary, Digital Dutch Finco B.V. These notes are senior unsecured obligations, fully and unconditionally guaranteed by DLR and its operating partnership. The offering is being made outside the United States under Regulation S, and the notes have not been registered under the Securities Act, meaning they cannot be offered or sold within the U.S. to U.S. persons without registration or an applicable exemption. The primary intention behind this offering is to secure funding for a variety of strategic initiatives. These include repaying existing borrowings under DLR's global revolving credit facilities, acquiring new properties or businesses, funding development projects, and investing in interest-bearing accounts and short-term securities that align with DLR's REIT status. The proceeds may also be used for working capital, other general corporate purposes, and potentially to repay or redeem other outstanding debt or equity.
Key Highlights
- 1DLR's subsidiary, Digital Dutch Finco B.V., has commenced an offering of Euro-denominated Guaranteed Notes.
- 2The Euro Notes are senior unsecured obligations, fully guaranteed by Digital Realty Trust, Inc. and the operating partnership.
- 3The offering is conducted outside the U.S. under Regulation S and is subject to market conditions.
- 4Net proceeds are earmarked for debt repayment, property/business acquisitions, development funding, and working capital.
- 5Funds may also be used for general corporate purposes, including potential repayment or redemption of other debt/equity.
- 6The final terms of the Euro Notes will be determined at the time of pricing.