Digital Realty greenshoe lifts 5.2% preferreds to $345 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 10 – Underwriters for Digital Realty Trust, Inc.’s $25-par series L 5.2% cumulative redeemable preferred stock fully exercised their $45 million greenshoe, increasing the total deal size to $345 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $300 million of the preferreds (Baa3/BB+/BB+) on Oct. 1, as previously reported.

The deal was upsized from an initial $150 million and came in below talk for a dividend of 5.25% to 5.375%.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The preferreds are redeemable on or after Oct. 10, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change-of-control event.

Digital Realty plans to use the proceeds to repay borrowings outstanding under Digital Realty Trust, LP’s global revolving credit facility, to acquire additional properties or businesses, to fund development opportunities, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption, or retirement of outstanding debt securities or preferred stock.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “DLRPrL.”

Digital Realty is a San Francisco-based real estate investment trust specializing in data centers.

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