Digital Realty Trust, Inc. plans to sell at least 8 million shares of its common stock in a public offering, with an option for the underwriters to purchase another 1.2 million shares. The sale would raise at least $246 million at DLR's current share price. The company will use half the proceeds from the sale to buy back limited partner units from GI Partners, the predecessor to Digital Realty. The remainder will be used to pay down the company's unsecured credit facility.
Digital Realty said it continues to shop for potential acqusiitons, and intends to borrow additional amounts under its revolving credit facility as needed to fund acquisitions and build out the company's redevelopment space and for general corporate purposes. Merrill Lynch & Co. and Citigroup Corporate and Investment Banking will serve as joint managers for the offering.