Summary
Digital Realty Trust, Inc. (DLR), through its wholly owned indirect finance subsidiary Digital Euro Finco, LLC, has successfully issued and sold €1.4 billion in aggregate principal amount of Euro-denominated senior unsecured notes. This offering comprises €600 million of 3.750% Guaranteed Notes due 2033 and €800 million of 4.250% Guaranteed Notes due 2037. The notes are fully and unconditionally guaranteed by DLR and its operating partnership, providing a strong credit backing for investors. The net proceeds from this offering are earmarked for financing or refinancing Eligible Green Projects, aligning with DLR's commitment to sustainability and environmental initiatives. Pending allocation to these projects, the funds may be temporarily utilized for debt repayment under revolving credit facilities, property acquisitions, development funding, or general corporate purposes, including other debt repayment. The issuance diversifies DLR's debt maturity profile and currency exposure, while reinforcing its financial flexibility.
Key Highlights
- 1DLR's subsidiary, Digital Euro Finco, LLC, issued €1.4 billion in Euro-denominated notes (3.750% due 2033 and 4.250% due 2037).
- 2The Euro Notes are senior unsecured obligations fully and unconditionally guaranteed by Digital Realty Trust, Inc. and its operating partnership.
- 3Net proceeds are intended to fund or refinance Eligible Green Projects, demonstrating commitment to sustainability.
- 4Pending green project allocation, proceeds may be used for debt reduction, acquisitions, development, or general corporate purposes.
- 5The issuance offers a mix of long-term maturities (2033 and 2037) and Euro currency exposure.
- 6Indentures contain restrictive covenants, including limitations on additional indebtedness and requirements to maintain unencumbered assets.
- 7The notes include provisions for redemption, including a make-whole premium under certain conditions and an option to redeem due to tax law changes.