By Andrea Heisinger
New York, Jan. 21 - Digital Realty Trust, LP sold $500 million of 5.875% 10-year senior unsecured notes on Thursday to yield 250 basis points over Treasuries, a source close to the deal said.
Price talk was initially in the high 200 bps area, he said, but bookrunners were able to bring it down so it priced at a tighter level.
The size of the sale was initially talked at $350 million, the source said, adding that it wasn't officially upsized.
The notes (Baa2/BBB/) priced at 98.296 to yield 6.105%. They have a make-whole call at Treasuries plus 27.5 bps.
The notes were priced under Rule 144A and Regulation S.
Bank of America Merrill Lynch and Citigroup Global Markets Inc. were on the books.
Proceeds are being used temporarily to repay all or a portion of borrowings under a revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities and for general corporate purposes.
The deal is guaranteed by parent company Digital Realty Trust Inc.
The equity real estate investment trust is based in San Francisco.
| Issuer: | Digital Realty Trust, LP
|
| Guarantor: | Digital Realty Trust Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc.
|
| Coupon: | 5.875%
|
| Price: | 98.296
|
| Yield: | 6.105%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 27.5 bps
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | Jan. 21
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | High 200 bps area
|
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