By Stephanie N. Rotondo
Phoenix, March 19 - Digital Realty Trust Inc. sold $300 million of 7.375% series H cumulative redeemable preferred stock, according to a market source on Wednesday.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
Dividends will be paid on the last day of March, June, September and December, beginning June 30. The company cannot redeem the preferreds prior to March 2019 except in the event of a change of control or in an effort to maintain its real estate investment trust status.
The San Francisco-based company intends to contribute proceeds to the operating partnership which will use the funds to repay borrowings under a global revolving credit facility, to acquire additional properties, for development opportunities and/or for general corporate purposes, including the potential repurchase or redemption of outstanding debt or preferred securities.
| Issuer: | Digital Realty Trust Inc.
|
| Securities: | Series H cumulative redeemable preferred stock
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| Amount: | $300 million, or 12 million shares
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| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
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| Dividend: | 7.375%
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| Price: | Par of $25.00
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| Yield: | 7.375%
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| Talk: | 7.375% to 7.5%
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| Call options: | On or after March 2019 or in the event of a change of control at par plus accrued dividends
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| Pricing date: | March 19
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| Expected listing: | NYSE: DLRPH
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