By Kenneth Lim
Boston, April 15 - Digital Realty Trust, Inc. priced an upsized $260 million of 20-year senior unsecured exchangeable notes in the middle of price talk with a coupon of 5.5% and an initial conversion premium of 20%.
The originally $200 million offering was indicated at a coupon of 5.25% to 5.75% and an initial exchange premium of 17.5% to 22.5% during price talk.
The notes are exchangeable into common stock of the listed company but are issued by Digital Realty Trust, LP.
There is an over-allotment option for an additional $40 million. The greenshoe was originally for $30 million.
Banc of America Securities LLC/Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse and Deutsche Bank Securities Inc. are the bookrunners of the Rule 144A offering.
The notes are non-callable for the first five years and may be put in years five, 10 and 15.
There will be dividend protection and takeover make-whole protection.
Digital Realty Trust, Inc. will guarantee the notes.
Proceeds will be used to repay revolving debt, to acquire additional properties, to fund development and redevelopment opportunities and for general purposes.
Digital Realty is a San Francisco-based real estate investment trust that focuses on the technology industry.
| Issuer: | Digital Realty Trust, LP
|
| Guarantor: | DRS Realty Trust, Inc.
|
| Issue: | Exchangeable senior unsecured notes
|
| Exchange: | Digital Realty Trust, Inc.
|
| Amount: | $260 million, increased from $200 million
|
| Greenshoe: | $40 million, increased from $30 million
|
| Maturity: | April 15, 2029
|
| Bookrunners: | Banc of America Securities LLC/Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse and Deutsche Bank Securities Inc.
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $43.00
|
| Conversion ratio: | 23.2558
|
| Dividend protection: | Yes
|
| Takeover protection: | Make-whole put
|
| Call protection: | Non-callable before April 18, 2014
|
| Puts: | April 15, 2014; April 15, 2019; and April 15, 2024
|
| Price talk: | 5.25%-5.75%, up 17.5%-22.5%
|
| Pricing date: | April 14, after the close
|
| Settlement date: | April 18
|
| Distribution: | Rule 144A
|
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