Digital Realty to Raise $175 Million
April 3rd, 2007 By: Rich Miller
Digital Realty Trust, Inc. (DLR) continues to raise funding to pursue opportunities in the capital-intensive data center facilities market. The company said today that it will sell 7 million shares of Series C Cumulative Convertible Preferred Stock at $25 per share, raising an estimated $175 million. Digital Realty Trust will also grant the offering manager, Credit Suisse Securities (USA), an option to buy up to 1.05 million shares within 30 days of the offering to cover over-allotments.
Digital Realty will use proceeds from the offering to pay down its unsecured credit facility and provide it with flexibilioty to fund future growth. The company is “actively pursuing multiple opportunities for potential acquisitions, with due diligence and negotiations at different stages of advancement,” and intends to tap its unsecured credit facility fro additional financing as needed to acquire additional properties.
Digital Realty Trust owns 62 properties comprising approximately 11.8 million rentable square feet in 25 markets in North AMerica and Europe, including 1.9 million square feet of space held for redevelopment.