Summary
Digital Realty Trust, Inc. (DLR) has announced the issuance and sale of €850 million in aggregate principal amount of 3.875% Guaranteed Notes due 2034 through 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, offering investors a fixed income stream with a maturity in 2034. The offering was conducted outside the United States under Regulation S. The net proceeds from this offering, approximately €836.6 million after expenses, are earmarked for a variety of strategic purposes. These include temporarily repaying borrowings under the company's global revolving credit facilities, funding potential property or business acquisitions, investing in development opportunities, and maintaining liquidity for working capital and other general corporate needs. The company also indicates these funds could be used for other debt repayments or redemptions, supporting overall financial flexibility. The interest rate of 3.875% per annum presents a cost of capital for these funds, which investors should consider in the context of DLR's overall debt structure and investment strategy.
Key Highlights
- 1Digital Realty Trust, Inc. (DLR) subsidiary issued €850 million in 3.875% Guaranteed Notes due 2034.
- 2The notes are senior unsecured obligations, fully guaranteed by DLR and its operating partnership.
- 3Proceeds are intended for debt repayment, strategic acquisitions, development funding, and general corporate purposes.
- 4The offering was completed outside the United States under Regulation S.
- 5Net proceeds are approximately €836.6 million after deducting discounts and expenses.
- 6The notes mature on July 15, 2034, with interest payable annually starting July 15, 2025.
- 7The indenture includes restrictive covenants on incurring additional indebtedness and maintaining unencumbered assets.