SAN FRANCISCO, June 10, 2019 /PRNewswire/ -- Digital Realty (DLR), a leading global provider of data center, colocation and interconnection solutions, announced today that its operating partnership, Digital Realty Trust, L.P. (the "operating partnership"), has priced an underwritten public offering of $900 million of 3.600% notes due 2029. The notes will be senior unsecured obligations of the operating partnership and will be fully and unconditionally guaranteed by Digital Realty Trust, Inc. The notes were issued at 99.823% of par value, with a coupon of 3.600% and will mature on July 1, 2029.
The company intends to use the net proceeds from the offering of the notes, together with borrowings under the operating partnership's global revolving credit facility or cash on hand, to refinance all of Digital Realty Trust, L.P.'s outstanding 3.400% Notes due 2020 and 5.250% Notes due 2021 (collectively, the "Existing Notes") pursuant to a tender offer announced separately today, by redemption or otherwise. Pending the allocation of an amount equal to the net proceeds from the offering of the notes to refinancing the Existing Notes, all or a portion of the net proceeds from the offering of the notes may be used to temporarily repay borrowings outstanding under the operating partnership's global revolving credit facility and Yen revolving credit facility, 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 other outstanding debt securities, or a combination of the foregoing.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC and MUFG Securities Americas Inc. are the joint book-running managers for the offering of the notes.
The offering of the notes was made under an effective shelf registration statement filed with the Securities and Exchange Commission. A copy of the prospectus supplement and accompanying prospectus relating to the offering of the notes will be filed with the SEC and will be available by visiting the EDGAR database on the SEC's website at www.sec.gov.
A copy of the prospectus supplement and the accompanying prospectus relating to the offering of the notes may be obtained, when available, by contacting:
J.P. Morgan Securities LLC
383 Madison Avenue
New York, NY 10179
Attn: Investment Grade Syndicate Desk
Fax: (212) 834-6081
Mizuho Securities USA LLC
320 Park Avenue, 12th Floor
New York, New York 10022
Attn: Debt Capital Markets
MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th Floor
New York, New York 10020
Attention: Capital Markets Group
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products.
For Additional Information
Andrew P. Power
Chief Financial Officer
John J. Stewart
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 offering of the notes and the expected use of the net proceeds therefrom. The company and the operating partnership can provide no assurances that it will be able to complete the offering on the anticipated terms, or at all. 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 their Annual Report on Form 10-K for the year ended December 31, 2018 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. The company and the operating partnership disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.