Digital Realty Completes €850 Million Guaranteed Notes Offering

Digital Realty’s €850 Million Notes Offering

Digital Realty, recognized as a leading provider of data center solutions, has recently announced a significant offering: €850 million aggregate principal amount of 3.875% Guaranteed Notes due in 2034. Priced attractively at 99.137% of the principal amount, this offering is projected to bolster the company’s operational capabilities and financial strength.

Details on the Offering

The Euro Notes will represent senior unsecured obligations of Digital Dutch Finco B.V., a wholly owned financial arm of Digital Realty Trust, L.P. The guaranteed notes will carry an annual interest rate of 3.875%, payable in arrears, with an effective starting date following the closing of the offering.

In terms of maturity, these notes are set to mature on July 15, 2034. The anticipated closing date for this offering is June 25, 2025, pending satisfaction of customary closing conditions, demonstrating the company's robust financial planning and commitment to operational excellence.

Strategic Use of Proceeds

The capital raised will be judiciously allocated to address several strategic initiatives that include temporarily repaying amounts outstanding under its revolving credit facilities. In addition, Digital Realty plans to utilize these net proceeds for the acquisition of additional properties or businesses and funding development opportunities.

Moreover, the company will also channel investments into interest-bearing accounts and short-term securities while ensuring alignment with its intention to qualify as a REIT under U.S. federal income tax purposes. This comprehensive approach not only underscores Digital Realty’s prudent financial management but also its ambition for growth and expansion.

Compliance Measures and Investor Information

It is essential to note that the Euro Notes are being offered exclusively outside the United States in reliance on Regulation S of the U.S. Securities Act of 1933. Due to this regulatory framework, the Euro Notes will not be registered under the Securities Act, ensuring compliance and protecting investors’ interests.

Digital Realty provides transparency regarding the nature of this offering, clearly stating that this communication does not represent an offer to sell these securities within the U.S. This added layer of compliance indicates the company’s dedication to maintaining high standards in all financial activities.

Forward-Looking Statements

In the spirit of transparency, Digital Realty acknowledges that this announcement contains forward-looking statements concerning expectations and assumptions that carry certain risks and uncertainties. These variables may lead to actual results differing materially from those anticipated. The company remains committed to continuously updating stakeholders as pertinent information becomes available.

Investor Relations Contacts

For any inquiries related to this offering or for further information, stakeholders should reach out to:

Jordan Sadler / Jim Huseby
Digital Realty
(415) 275 5344

Frequently Asked Questions

What is the purpose of the €850 million notes offering?

The proceeds will be used to repay credit facilities and to invest in growth initiatives including acquisitions and development opportunities.

Who will guarantee these Euro Notes?

The Euro Notes will be fully guaranteed by Digital Realty and its operating partnership, ensuring security for investors.

When do the Euro Notes mature?

The Euro Notes are set to mature on July 15, 2034, providing a long-term investment opportunity.

How does this offering impact Digital Realty’s financial strategy?

This offering strengthens Digital Realty’s financial position and supports its strategy to qualify as a REIT.

Who should I contact for more information?

For inquiries, contact Jordan Sadler or Jim Huseby at Digital Realty via their investor relations number.

About The Author

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