Digital Realty Raises $260M in Debt Offering

Digital Realty Trust (DLR) has raised $260 million through a private placement of debt, the company said today. Digital Realty, the largest landlord of data center properties, said it will use the funding to repay borrowings from its revolving credit facility, acquire additional properties and fund development and redevelopment opportunities.

On Tuesday Digital Realty Trust announced plans to sell $200 million in debt, with the potential to raise an additional $30 million through an overallotment. Instead, the offering raised $260 million, and the company said it has granted the purchasers a 30-day option to buy another $40 million to cover over-allotments.

The Exchangeable Senior Debentures will pay 5.5 percent and come due 2029. They are exchangeable for shares of DLR common stock at an initial exchange rate of 23.2 shares per $1,000 principal amount. The initial exchange price of $43.00 represents a 20 percent premium over yesterday’s closing price of $35.83 per share.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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