Digital Realty Announces Pricing of 3.950% Notes Due 2022

Jun 18, 2015, 22:22 ET from Digital Realty Trust, Inc.

SAN FRANCISCO, June 18, 2015 /PRNewswire/ -- Digital Realty Trust, Inc. (the "Company") (NYSE: DLR), a leading global provider of data center and colocation solutions, announced today that its operating partnership subsidiary, Digital Realty Trust, L.P. (the "Operating Partnership"), priced an underwritten registered public offering of $500 million aggregate principal amount of 3.950% notes due 2022 (the "notes").  The notes are senior unsecured obligations of the Operating Partnership and are fully and unconditionally guaranteed by the Company.  Interest on the notes is payable semiannually on each January 1st and July 1st, beginning on January 1, 2016.  The notes were issued at 99.236% of par value, with a coupon of 3.950% and will mature on July 1, 2022.  The offering was made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on April 20, 2015.  The offering is expected to close on June 23, 2015, subject to certain closing conditions.

The Operating Partnership will use the net proceeds from the offering of the notes to fund, in whole or in part, certain eligible green projects and, pending such uses, to repay borrowings under its global revolving credit facility.

BofA Merrill Lynch, Citigroup, J.P. Morgan, RBC Capital Markets and US Bancorp are the joint book-running managers for the offering.

A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting BofA Merrill Lynch, 222 Broadway, New York, NY 10038 (telephone: 1-800-294-1322 or email: dg.prospectus_requests@baml.com), Citigroup, 388 Greenwich Street, New York, NY 10013 (telephone 1-800-831-9146) or J.P. Morgan, 383 Madison Avenue, New York, NY 10179 (collect 1-212-834-4533).

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 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 completion and timing of the offering and the intended use of proceeds from the offering.  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 geographic markets; 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; our failure to successfully integrate and operate acquired or developed properties or businesses; 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 Report on Form 10-Q for the quarter ended March 31, 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. 

For Additional Information:

Andrew P. Power

Chief Financial Officer

Digital Realty Trust, Inc.

+1 (415) 738-6500

John J. Stewart

Senior Vice President

Investor Relations

Digital Realty Trust, Inc.

+1 (415) 738-6500

 

SOURCE Digital Realty Trust, Inc.



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