#United States #Dallas #Digital Realty #Guaranteed Notes #2035

Digital Realty Announces Strategic Pricing of €850 Million in Guaranteed Notes

Digital Realty, recognized as the world’s largest provider of cloud- and carrier-neutral data centers, has recently announced a significant development in its financial strategy. The company priced an offering of €850 million in aggregate principal amount of 3.875% Guaranteed Notes, which are slated to mature in 2035. This financial maneuver is seen as pivotal for the company's operational and capital structure moving forward.

Financial Details of the Offering

The pricing of these notes occurred at 99.343% of the principal amount, establishing an attractive yield for potential investors. The Euro Notes will be unsecured obligations of Digital Dutch Finco B.V., a wholly owned finance subsidiary of Digital Realty's operating partnership. The interest rate is set at 3.875% per annum, with payments scheduled to be made annually in arrears starting on January 14, 2025. The notes are designed to mature on March 15, 2035, reflecting a long-term vision for funding and investments.

Use of Proceeds

The net proceeds from this offering are poised to be utilized in various strategic areas. Digital Realty intends to:

• - Temporarily repay outstanding borrowings under the global revolving credit facilities of the operating partnership.
• - Acquire additional properties or businesses, aligning with the company’s growth strategy and market expansion plans.
• - Fund development opportunities, thus ensuring ongoing investments into their data center capabilities.
• - Invest in interest-bearing accounts and short-term securities that comply with the requirements for qualifying as a REIT for U.S. federal income tax purposes.
• - Provide for working capital and other general corporate needs, potentially including debt repayment and equity retirements.

This multifaceted approach to utilizing the funds demonstrates Digital Realty’s commitment to leveraging its financial resources strategically to enhance its operational effectiveness and long-term growth trajectory.

Regulatory Notes

It is important for potential investors to note that these Euro Notes will only be sold outside the United States, relying on Regulation S from the U.S. Securities Act of 1933. The notes are unregistered and will not be available for sale to U.S. persons without proper registration or an applicable exemption.

Digital Realty also included several disclaimers regarding forward-looking statements, highlighting the inherent uncertainties in predicting outcomes related to this offering and its future implications. Such disclaimers serve to inform investors about the potential risks associated with their investments.

Conclusion

This offering by Digital Realty represents not just a financial transaction but a strategic initiative that underlines the company’s growth ambitions in the ever-expanding data center market. By effectively managing and diversifying its liabilities, Digital Realty is positioning itself to capitalise on emerging opportunities, ensuring its competitive edge in the cloud and data infrastructure landscape.

As the digital economy continues to evolve, with increasing demands for data storage and processing, Digital Realty’s proactive measures should resonate positively with investors, stakeholders, and industry analysts alike. With the anticipated closing of this offering set for January 14, 2025, all eyes will remain on how the company deploys these resources in pursuing its ambitious objectives.