Digital Realty Trust, L.P. Announces Proposed Exchangeable Senior Notes Offering
Digital Realty Trust (NYSE: DLR) announced that its subsidiary, Digital Realty Trust, L.P., plans to offer $1 billion in exchangeable senior notes due 2029, with an additional $150 million option for initial purchasers. The notes will be senior, unsecured obligations with semi-annual interest payments, maturing on November 15, 2029. They will be redeemable after November 22, 2027, if certain conditions are met. The proceeds will be used to temporarily repay revolving credit facilities, acquire properties, fund development, and for general corporate purposes.
Digital Realty Trust (NYSE: DLR) ha annunciato che la sua sussidiaria, Digital Realty Trust, L.P., prevede di offrire 1 miliardo di dollari in obbligazioni senior convertibili con scadenza nel 2029, con un'opzione aggiuntiva di 150 milioni di dollari per i primi acquirenti. Le obbligazioni saranno obbligazioni senior non garantite con pagamenti di interessi semestrali, in scadenza il 15 novembre 2029. Saranno rimborsabili dopo il 22 novembre 2027, se vengono soddisfatte determinate condizioni. I proventi saranno utilizzati per ripagare temporaneamente le linee di credito revolving, acquisire proprietà, finanziare lo sviluppo e per scopi aziendali generali.
Digital Realty Trust (NYSE: DLR) anunció que su subsidiaria, Digital Realty Trust, L.P., planea ofrecer 1 mil millones de dólares en notas senior intercambiables con vencimiento en 2029, con una opción adicional de 150 millones de dólares para los compradores iniciales. Las notas serán obligaciones senior no garantizadas con pagos de intereses semestrales, que vencerán el 15 de noviembre de 2029. Podrán ser canjeadas después del 22 de noviembre de 2027, si se cumplen ciertas condiciones. Los ingresos se utilizarán para pagar temporalmente líneas de crédito rotativo, adquirir propiedades, financiar desarrollos y para fines corporativos generales.
디지털 리얼티 트스트 (NYSE: DLR)는 자회사인 디지털 리얼티 트스트 L.P.가 2029년에 만기가 되는 10억 달러의 교환 가능한 선순위 채권을 제공할 계획이라고 발표했습니다. 초기 구매자에게는 추가로 1억 5천만 달러의 옵션이 있습니다. 이 채권은 반기마다 이자 지급이 있는 선순위 비담보 채무로, 2029년 11월 15일에 만기됩니다. 특정 조건이 충족될 경우 2027년 11월 22일 이후에 상환할 수 있습니다. 수익금은 일시적으로 회전 신용 시설을 상환하고, 부동산을 취득하고, 개발에 자금을 지원하며, 일반 기업 목적에 사용될 것입니다.
Digital Realty Trust (NYSE: DLR) a annoncé que sa filiale, Digital Realty Trust, L.P., prévoit d'émettre 1 milliard de dollars en obligations senior échangeables arrivant à échéance en 2029, avec une option supplémentaire de 150 millions de dollars pour les premiers acheteurs. Les obligations seront des engagements senior non garantis avec des paiements d'intérêts semestriels, arrivant à échéance le 15 novembre 2029. Elles pourront être rachetées après le 22 novembre 2027, si certaines conditions sont remplies. Les produits seront utilisés pour rembourser temporairement des lignes de crédit de rotation, acquérir des propriétés, financer des développements et pour des fins générales de l'entreprise.
Digital Realty Trust (NYSE: DLR) gab bekannt, dass seine Tochtergesellschaft, Digital Realty Trust, L.P., plant, 1 Milliarde Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2029 anzubieten, mit einer zusätzlichen Option von 150 Millionen Dollar für Erstkäufer. Die Anleihen werden ungesicherte vorrangige Verpflichtungen mit halbjährlichen Zinszahlungen sein, die am 15. November 2029 fällig werden. Sie können nach dem 22. November 2027 zurückgezogen werden, wenn bestimmte Bedingungen erfüllt sind. Die Erlöse werden verwendet, um vorübergehend revolvierende Kreditfazilitäten zurückzuzahlen, Immobilien zu erwerben, Entwicklungsprojekte zu finanzieren und für allgemeine Unternehmenszwecke.
- Access to significant capital with $1 billion note offering
- Additional $150 million option available for purchasers
- Flexibility in debt management with redemption options
- Strengthening of financial position through debt refinancing
- Potential dilution of existing shareholders if notes are exchanged for common stock
- Increased debt obligation with associated interest payments
- Additional financial leverage that could impact balance sheet metrics
Insights
This
The exchangeable feature, triggered at
This debt offering strengthens Digital Realty's position in the competitive data center REIT sector. The flexibility to use proceeds for property acquisitions and development is particularly strategic given the current market dynamics in the data center space. The ability to temporarily reduce revolving credit facility exposure while maintaining dry powder for opportunistic investments showcases prudent capital management.
The redemption and fundamental change provisions provide balanced protection for both the company and noteholders. The semi-annual interest payments and 2029 maturity align well with typical commercial real estate investment horizons, while the exchangeable feature offers participation in potential equity appreciation of this leading data center platform.
The notes will be senior, unsecured obligations of Digital Realty L.P., will accrue interest payable semi-annually in arrears and will mature on November 15, 2029, unless earlier repurchased, redeemed or exchanged. Noteholders will have the right to exchange their notes in certain circumstances and during specified periods. Digital Realty L.P. will settle exchanges in cash and, if applicable, shares of Digital Realty's common stock.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Digital Realty L.P.'s option at any time, and from time to time, on or after November 22, 2027 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Digital Realty's common stock exceeds
If certain corporate events that constitute a "fundamental change" occur, then, subject to a limited exception, noteholders may require Digital Realty L.P. to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
The notes will be entitled to the benefits of a registration rights agreement pursuant to which Digital Realty will agree to register, under the Securities Act, the resale of the shares of Digital Realty's common stock, if any, issuable upon exchange of the notes within specified time periods and subject to certain limitations.
The interest rate, initial exchange rate and other terms of the notes will be determined at the pricing of the offering.
Digital Realty L.P. intends to use the net proceeds from the offering 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 offer and sale of the notes, the guarantee and any shares of Digital Realty's common stock issuable upon exchange of the notes have not been registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. Although Digital Realty L.P. and Digital Realty intend to enter into a registration rights agreement pursuant to which Digital Realty will agree to register, under the Securities Act, the resale of the shares of Digital Realty's common stock, if any, issuable upon exchange of the notes, the registration rights agreement will contain significant limitations, and a resale registration statement may not be available at the time investors wish to resell the shares of Digital Realty's common stock, if any, issuable upon exchange of their notes. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of Digital Realty's common stock issuable upon exchange of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
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 data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.
Investor Relations
Jordan
Digital Realty
+1 415 275 5344
InvestorRelations@digitalrealty.com
Safe Harbor Statement
This press release includes forward-looking statements, including statements regarding the anticipated terms of the notes being offered, the completion, timing and size of the proposed offering and the intended use of the net proceeds. Forward-looking statements represent Digital Realty's current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Digital Realty's common stock and risks relating to Digital Realty's business, including those described in periodic reports that Digital Realty files from time to time with the SEC. Digital Realty L.P. may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offering or the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and neither Digital Realty nor Digital Realty L.P. undertakes to update the statements included in this press release for subsequent developments, except as may be required by law.
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SOURCE Digital Realty Trust
FAQ
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