By Stephanie N. Rotondo
Phoenix, March 20 - Digital Realty Trust Inc. gave more details for its $300 million offering of 7.375% series H cumulative redeemable preferred stock (expected ratings: Baa3/BB+/BB+) in an FWP filed with the Securities and Exchange Commission on Thursday.
The deal priced late Wednesday.
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 26, 2019 except in the event of a change of control or in an effort to maintain its real estate investment trust status.
After that date, the redemption price is par plus accrued dividends.
BofA Merrill Lynch, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC are the joint bookrunners.
The San Francisco-based company intends to contribute the proceeds from the sale to its 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.
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| Securities: | Series H cumulative redeemable preferred stock
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| Amount: | $300 million, or 12 million shares
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| Greenshoe: | $45 million, or 1.8 million shares
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| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC
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| Senior co-managers: | Citigroup Global Markets Inc., JPMorgan Securities LLC, Raymond James & Associates Inc., RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.
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| Junior co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SMBC Nikko Securities America Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., BBVA Securities Inc., MLV & Co. LLC and U.S. Bancorp Investments, Inc.
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| Dividend: | 7.375%
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| Talk: | 7.375% to 7.5%
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| Price: | Par of $25
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| Yield: | 7.375%
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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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| Settlement date: | March 26
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| Expected ratings: Moody's: Baa3
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| Standard & Poor's: BB+
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| Fitch: BB+
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| Expected listing: | NYSE: DLRPH
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