Digital Realty Prices Common Stock Offering

Rhea-AI Summary

Digital Realty, the largest global provider of cloud- and carrier-neutral data center solutions, announced a public offering of 10,500,000 shares of common stock, expecting gross proceeds of $1,470 million. The offering will help repay borrowings, acquire properties, fund development opportunities, and support general corporate purposes.

AUSTIN, Texas, May 8, 2024 /PRNewswire/ -- Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today it has priced an underwritten registered public offering of 10,500,000 shares of its common stock for expected gross proceeds of approximately $1,470 million.

BofA Securities, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as joint-bookrunning managers for the public offering.  

As part of the offering, the Company also granted the underwriters a 30-day option to purchase up to an additional 1,575,000 shares of the company's common stock. The offering is expected to close on May 10, 2024, subject to customary closing conditions. 

The Company intends to contribute the net proceeds from this offering to its operating partnership, which will subsequently use the net proceeds to temporarily repay borrowings outstanding under its 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 final 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, when available, 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, Edgewood, NY 11717 (Tel: 800-831-9146); and J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com. 

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 Sadler / Jim Huseby
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 and closing of the offering and the 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 SEC, including Digital Realty Trust, Inc. and Digital Realty Trust, L.P.'s combined Annual Report on Form 10-K for the year ended December 31, 2023 and other documents subsequently filed by the Company with the SEC.  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

How many shares of common stock are being offered by Digital Realty?

Digital Realty is offering 10,500,000 shares of common stock.

What are the expected gross proceeds of the offering?

The expected gross proceeds of the offering are approximately $1,470 million.

Who are the joint-bookrunning managers for the public offering of Digital Realty?

BofA Securities, Citigroup Global Markets Inc., and J.P. Morgan Securities are acting as the joint-bookrunning managers.

What will Digital Realty use the net proceeds for?

The net proceeds will be used to repay borrowings, acquire properties, fund development opportunities, and support general corporate purposes.