DigitalBridge exchanges $44 million 5.75% exchangeable notes due 2025 for shares

By Rebecca Melvin

Concord, N.H., Oct. 12 – DigitalBridge Group, Inc. announced that it has entered into an exchange agreement with certain holders of its 5.75% exchangeable senior notes due 2025 to exchange $44 million of the notes for class A common shares of the company, according to a news release.

The notes were issued by DigitalBridge Operating Co. LLC.

The agreement improves cash flows and saves on future cash payments under the original terms of the notes, the company said.

Under the agreement, the original exchange ratio of 434.7826 shares per $1,000 of notes has been adjusted to account for savings on future interest payments.

Using the $6.69 closing price of DigitalBridge shares on Oct. 11, the exchange ratio would be 456.0831 shares per bond with an incremental 21 shares representing value for the incremental interest due to the noteholder.

The number of common shares issued by DigitalBridge would be about 20.1 million shares.

The early exchange agreement incorporates a reference price and an adjustment mechanism to capture fluctuations in the common stock price over the next five trading days, with the exchange expected to close on Oct. 20.

Accrued interest through the closing date is $667,244.

The digital infrastructure real estate investment trust is based in Boca Raton, Fla.

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