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Digital Realty Trust, L.P. Announces Pricing of 3.625% Notes Due 2022
Sep 19, 2012 (06:09 PM EDT)
SAN FRANCISCO, Sept. 19, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (the "Company") (NYSE: DLR), a global wholesale datacenter provider, announced today that its operating partnership subsidiary, Digital Realty Trust, L.P. (the "Operating Partnership"), priced an underwritten registered public offering of $300 million aggregate principal amount of 3.625% notes due 2022. 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 October 1 and April 1, beginning on April 1, 2013; the notes will mature on October 1, 2022. The notes were issued at 98.684% of par value, with a coupon of 3.625%. The offering was made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on April 23, 2012. The offering is expected to close on September 24, 2012, subject to certain closing conditions.
The Operating Partnership intends to use the net proceeds of the offering to temporarily repay borrowings under its global revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities, for general working capital purposes, including potentially for the repurchase, redemption or retirement of outstanding debt securities or preferred securities, or a combination of the foregoing.
Citigroup, Credit Suisse, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley acted as joint book-running managers in this offering. A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting Citigroup, Brooklyn Army Terminal, 140 58th Street, 8th floor , Brooklyn, NY 11220 (telephone: 1-800-831-9146 or email: firstname.lastname@example.org); Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010 (telephone: 1-800-221-1037); Goldman, Sachs & Co., Prospectus Department, 200 West Street, New York, NY 10282 (telephone: 1-866-471-2526, facsimile: 212-902-9316 or e-mail: email@example.com); J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk- 3rd floor (telephone: 212-834-4533); or Morgan Stanley & Co. LLC, 180 Varick Street, New York, NY 10014, Attention: Prospectus Department (telephone: 1-866-718-1649).
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. 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.
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 109 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 21.1 million square feet as of September 17, 2012, including 2.2 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia.
Safe Harbor Statement
This press release contains forward-looking statements, including statements related to the expected timing of closing of the offering and the expected use of the net proceeds, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; 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; increased interest rates and operating costs; 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 redeveloped properties or businesses; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; 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; Digital Realty Trust, Inc.'s failure to maintain its 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 and the Operating Partnership with the U.S. Securities and Exchange Commission, including the Company and the Operating Partnership's combined Annual Report on Form 10-K for the year ended December 31, 2011 and combined Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012. 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.