Digital Realty Announces Pricing Of 10,000,000 Shares Of 6.350% Series I Cumulative Redeemable Preferred Stock

Aug 13, 2015, 21:30 ET from Digital Realty Trust, Inc.

SAN FRANCISCO, Aug. 13, 2015 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR) announced today the pricing, in an underwritten public offering, of 10,000,000 shares of 6.350% Series I Cumulative Redeemable Preferred Stock at a price of $25.00 per share for gross proceeds of $250 million.  The company has also granted the underwriters a 30-day option to purchase from the company up to an additional 1,500,000 shares.  The offering, which priced on August 13, 2015, is expected to close on August 24, 2015, subject to customary closing conditions.

The company intends to use the net proceeds from this offering to fund a portion of the aggregate purchase price for the previously-announced pending acquisition of Telx Holdings, Inc.

Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC are the joint book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement filed by the company with the Securities and Exchange Commission and only by means of a prospectus and related prospectus supplement.  Copies of these documents may be obtained, when available, by contacting Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department (telephone: 1-866-718-1649 or email: prospectus@morganstanley.com), Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222 Broadway, New York, NY 10038 (telephone: 1-800-294-1322 or email: dg.prospectus_requests@baml.com), Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013 (telephone: 1-800-831-9146), or Wells Fargo Securities, LLC, 608 2nd Avenue, South Minneapolis, MN 55402, Attn: WFS Customer Service (telephone: 1-800-645-3751 or email: wfscustomerservice@wellsfargo.com).

This press release is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy with respect to any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.  The offering is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

For Additional Information:

Andy P. Power         

John J. Stewart

Chief Financial Officer  

SVP, Investor Relations

Digital Realty Trust, Inc.  

Digital Realty Trust, Inc.

+1 (415) 738-6500         

+1 (415) 738-6500

About Digital Realty

Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 600 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia.  Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.

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 acquisition of Telx, completion and timing of the offering, and use of proceeds.  These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in our metropolitan areas; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; the occurrence of any event, change or other circumstance that would compromise our ability to complete the acquisition of Telx within the expected timeframe or at all; our failure to successfully integrate and operate acquired or developed properties or businesses, including Telx; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates.  For a further 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, including the company's Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015.  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.

 

 

SOURCE Digital Realty Trust, Inc.



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