Digital Realty Trust (DLR) today announced that it plans to sell 5 million shares of its common stock in a public offering. The company also plans to grant the underwriters an option to purchase up to 750,000 shares of common stock to cover over-allotments. All of the shares will be offered by Digital Realty Trust and issued under Digital Realty Trust's currently effective shelf registration statement filed with the Securities and Exchange Commission. If all 5.75 million shares were sold at the current share price of $38.81 per share, the offering would raise approximately $223 million.
UPDATE: Digital Realty says it will sell the new shares at $38.42 per share for net proceeds of $183.9 million after underwriting discounts and commissions and estimated offering expenses, or $211.6 million if the underwriters' over-allotment option is exercised in full.
Digital Realty Trust intends to use the proceeds of the stock sale repay all or some of the money it has borrowed under its revolving credit facility, to acquire additional properties, and to fund redevelopment opportunities under its Turn-Key Datacenter program. Turn-key space is fully developed for data center use, allowing companies to accelerate their data center expansions.
