Digital Realty Announces Redemption of 3.625% Notes Due 2022 and 3.950% Notes Due 2022

Rhea-AI Summary

Digital Realty (NYSE: DLR) has announced its intention to redeem all outstanding 3.625% notes due 2022 and 3.950% notes due 2022. The redemption, effective August 3, 2020, includes $300 million of 3.625% notes and $500 million of 3.950% notes, with a redemption price equating to par plus a make-whole premium and accrued interest. Wells Fargo Bank serves as the trustee for both note series. The company emphasized its focus on data center and interconnection solutions.

Positive

• Redemption of $800 million in total outstanding notes improves financial leverage.
• Elimination of upcoming interest payments enhances cash flow.

Negative

• None.

SAN FRANCISCO, July 2, 2020 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today that its operating partnership, Digital Realty Trust, L.P., has given notice of its intention to redeem all of its outstanding 3.625% notes due 2022, pursuant to its option under the indenture governing the 3.625% notes, dated as of September 24, 2012, and all of its outstanding 3.950% notes due 2022, pursuant to its option under the indenture governing the 3.950% notes, dated as of June 23, 2015.  The redemption date is August 3, 2020, and the applicable redemption price is equal to par plus a make-whole premium, plus accrued and unpaid interest thereon to, but not including, the redemption date, in accordance with the terms of the applicable series of notes.  As of the date hereof, there was $300,000,000 aggregate principal amount of the 3.625% notes outstanding and $500,000,000 aggregate principal amount of the 3.950% notes outstanding.  

Wells Fargo Bank, National Association is the trustee and paying agent for each of the 3.625% notes and the 3.950% notes. 

About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of customers across the Americas, EMEA and APAC, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products.  

For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500

Investor Relations
John J. Stewart
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com

Safe Harbor Statement
This press release contains forward-looking statements which 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 redemption.  For a list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission.  The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

 

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SOURCE Digital Realty

FAQ

What is Digital Realty's plan for its 3.625% and 3.950% notes due 2022?

Digital Realty plans to redeem all outstanding 3.625% and 3.950% notes due 2022 on August 3, 2020.

How much principal is being redeemed in Digital Realty's notes due 2022?

Digital Realty is redeeming $300 million of 3.625% notes and $500 million of 3.950% notes due 2022.

What does the redemption price for Digital Realty's notes include?

The redemption price will equal par plus a make-whole premium and accrued unpaid interest.

Who is the trustee for the 3.625% and 3.950% notes of Digital Realty?

Wells Fargo Bank, National Association is the trustee and paying agent for both the 3.625% and 3.950% notes.