Digital Realty greenshoe exercised, ups 5.5% notes to $266.4 million

By Devika Patel

Knoxville, Tenn., April 22 - Underwriters for Digital Realty Trust, Inc.'s 5.5% 20-year senior unsecured exchangeable notes exercised their over-allotment option in part for $6.4 million more of the notes, increasing the size of the issue to $266.4 million, the company said in an 8-K filed Wednesday with the Securities and Exchange Commission.

As previously reported, the company sold the exchangeables at par on April 14, after the close, in a Rule 144A offering via joint bookrunners Banc of America Securities LLC/Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse and Deutsche Bank Securities Inc.

The bonds have a conversion premium of 20% and a conversion ratio of 23.2558, which equals a conversion price of $43.00.

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.

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