Digital Realty Announces Common Stock Offering
Digital Realty, the leading global provider of data center and interconnection solutions, has announced a public offering of 10,500,000 shares of its common stock with an option for underwriters to purchase additional shares. The proceeds will be used for debt repayment, property acquisition, business expansion, and general corporate purposes.
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Insights
The announcement by Digital Realty of its public offering of 10,500,000 shares with an additional 1,575,000 shares over-allotment option manifests a strategic move to bolster its capital for varied corporate purposes. This is a substantive indication of the company's intent to optimize its financial structure. The capital raised is earmarked for repaying borrowings under the company's global revolving credit facilities and furthering growth-oriented initiatives such as acquiring properties or businesses and funding development opportunities.
For investors, it's imperative to recognize that such fundraising can lead to dilution of ownership. However, it also suggests confidence from the top-tier underwriters involved in the transaction. The intended use of proceeds to manage debt and invest in strategic avenues may indicate a positive outlook towards the company's growth trajectory and financial health. Analyzing the terms of this offering, particularly in comparison to the company's historical stock performance and market conditions, is essential for evaluating its appeal as an investment option.
The technology sector, specifically cloud services and data centers, is witnessing an escalation in demand, creating an environment ripe for expansion and investment, as seen by Digital Realty's move. Investors should assess the market's potential for further growth, considering the increasing reliance on digital infrastructure. Digital Realty's positioning within this sphere and specifically its infrastructure offerings, will likely be reinforced by this capital inflow.
From a market perspective, the context of this offering should be evaluated against competitors' capacity for growth and market demands. Digital Realty's strategy to enhance liquidity and financial flexibility could furnish it with a competitive edge to procure strategic assets or pursue market opportunities as they arise, potentially benefiting long-term shareholder value.
BofA Securities, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC will act as joint book-running managers for the public offering.
The Company intends to contribute the net proceeds from this offering to its operating partnership, which will subsequently use the net proceeds received from the Company to temporarily repay borrowings outstanding under its operating partnership's global revolving credit facilities, acquire additional properties or businesses, fund development opportunities, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption or retirement of outstanding debt securities, or a combination of the foregoing.
The offering is being made pursuant to an effective shelf registration statement (containing a prospectus) filed with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, by email at dg.prospectus_requests@bofa.com; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected communities that matter to them with a global data center footprint of 300+ facilities in 50+ metropolitan areas across 25+ countries on six continents.
For Additional Information
Investor Relations
Jordan
Digital Realty
+1 737 281 0101
InvestorRelations@digitalrealty.com
Safe Harbor Statement
This press release contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the timing of the offering and expected use of proceeds. For a list and description of such risks and uncertainties, see the reports and other filings by Digital Realty Trust, Inc. and Digital Realty Trust, L.P. with the
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SOURCE Digital Realty Trust
FAQ
How many shares of common stock is Digital Realty offering?
Which companies are acting as joint book-running managers for the public offering?
What will the net proceeds from the offering be used for?
