SAN FRANCISCO, March 1, 2011 /PRNewswire via COMTEX/ —
Digital Realty Trust, Inc. (the “Company”) (NYSE:DLR, news, filings), a global wholesale datacenter provider, announced today that its operating partnership subsidiary, Digital Realty Trust, L.P. (the “Operating Partnership”), priced an underwritten registered public offering of$400 million aggregate principal amount of 5.250% notes due 2021. The notes are senior unsecured obligations of the Operating Partnership and are fully and unconditionally guaranteed by the Company. Interest on the notes is payable semiannually on March 15and September 15, beginning on September 15, 2011; the notes will mature on March 15, 2021. The notes were issued at 99.775% of par value, with a coupon of 5.250%. The offering was made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on May 1, 2009, as amended by a post-effective amendment filed on November 15, 2010. The offering is expected to close on March8,2011, subject to certain closing conditions.
The Operating Partnership intends to use the net proceeds of the offering to temporarily repay borrowings under its revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities and for general working capital purposes, including potentially for the repurchase, redemption or retirement of outstanding debt securities.
Morgan Stanley & Co. Incorporated, Citi, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, and Deutsche Bank Securities Inc. acted as joint bookrunning managers in this offering. A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, New York 10014, Attn: Prospectus Department (telephone +1 866-718-1649); Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor,Brooklyn, New York 11220 (telephone +1 877-858-5407); Merrill Lynch, Pierce, Fenner & Smith Incorporated, 100 West 33rd Street, New York, New York 10001, Attention: Prospectus Department (telephone +1 800-294-1322); Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, New York 10010 (telephone +1 800-221-1037); or Deutsche Bank Securities Inc., Attention: Prospectus Department, Harborside Financial Center, 100 Plaza One, Floor 2, Jersey City, New Jersey 07311-3988 (telephone +1 800-503-4611).
This press release is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy with respect to any securities. The offering is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing secure, reliable and cost effective datacenter facilities. Digital Realty Trust’s customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust’s 96 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.8 million square feet as of March 1, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty Trust’s portfolio is located in 28 markets throughout Europe, North Americaand Singapore.
Safe Harbor Statement
This press release contains forward-looking statements, including statements related to the expected timing of closing of the offering and the expected use of the net proceeds, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; Digital Realty Trust, Inc.’s failure to maintain its status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company and the Operating Partnership with the U.S. Securities and Exchange Commission, including the Company and Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|For Additional Information:|
|A. William Stein||Pamela A. Matthews|
|Chief Financial Officer and||Vice President, Investor Relations|
|Chief Investment Officer||Digital Realty Trust, Inc.|
|Digital Realty Trust, Inc.||+1 415-738-6500|
SOURCE Digital Realty Trust, Inc.