Digital Realty takes in tenders of $350.12 million 5.875% notes

By Wendy Van Sickle

Columbus, Ohio, Jan. 17 – Digital Realty Trust, Inc. said its Digital Realty Trust, LP subsidiary took in tenders of $350,123,000, or 70.02%, of its $500 million of 5.875% senior notes due 2020 by the final deadline of its tender offer.

The offer was announced on Jan. 11 and expired at 5 p.m. ET on Jan. 17.

The purchase price will be $1,022.81 for each $1,000 principal amount, which was set at 2 p.m. ET on Jan. 17 using the 2% U.S. Treasury due Jan. 31, 2020 plus 37.5 basis points for a reference yield of 2.569%, according to a company update earlier on Thursday.

Holders will also receive accrued interest to but excluding the settlement date of Jan. 18.

The company said it plans to redeem any notes that remain outstanding after settlement on Feb. 19.

The company is funding the total offer consideration of $367,651,373.10 via proceeds of new notes.

As reported, the company’s Digital Euro Finco, LLC wholly owned indirect finance subsidiary priced €850 million of 2.5% green guaranteed notes due Jan. 16, 2026 on Jan. 11.

The notes are guaranteed by Digital Realty Trust Inc. and Digital Realty Trust LP.

Global Bondholder Services Corp. (866 924-2200) is the tender agent and information agent. BofA Merrill Lynch (888 292-0070 or 980 387-3907) is the dealer manager.

“Pending the allocation of an amount equal to the net proceeds of the euro notes to eligible green projects, all or a portion of an amount equal to the net proceeds may be used for the payment of outstanding indebtedness or other capital management activities,” according to a previous announcement.

The debt to be redeemed or repaid will include the operating partnership's 5.875% senior notes due 2020 under a tender offer for the notes and may include borrowings under the operating partnership's global credit facilities, as well as other outstanding debt, the company added.

Digital Realty owns, acquires, develops and operates data centers and is based in San Francisco.

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