SAN FRANCISCO, Sept. 8, 2011 /PRNewswire via COMTEX/ —
Digital Realty Trust, Inc. (the “Company” or “Digital Realty”) (NYSE:DLR, news, filings) today announced the pricing of an underwritten public offering of 10,000,000 shares of Series E Cumulative Redeemable Preferred Stock at a price of $25.00 per share for gross proceeds of $250,000,000. The offering is expected to close on September 15, 2011, subject to closing conditions. The Company has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of its Series E Cumulative Redeemable Preferred Stock to cover over-allotments, if any. The Company intends to list the shares on the New York Stock Exchange.
The Company intends to contribute the net proceeds from this offering to its operating partnership, Digital Realty Trust, L.P., which will subsequently use the net proceeds received from the Company to temporarily repay borrowings under its revolving credit facility, to acquire additional properties, to fund development and redevelopment opportunities, for general corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or preferred equity securities, or a combination of the foregoing. The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley and Wells Fargo Securities, LLC are the joint book-running managers for the offering.
A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated, 100 West 33rd Street, 3rd Floor, New York, NY 10001, Attention: Syndicate Operations (email dg.prospectus_requests@baml.com); Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department (telephone 1-866-718-1649 or email: prospectus@morganstanley.com); or Wells Fargo Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Capital Markets Client Support (telephone 1-800-326-5897 or email cmClientsupport@wachovia.com).
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
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions. Digital Realty’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’s 97 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 17.2 million net rentable square feet as of September 6, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty’s portfolio is located in 30 markets throughout Europe, North America, Singapore and Australia.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements related to the completion and timing of the offering and the intended use of proceeds from the offering. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions including the downgrading of the U.S. government’s credit rating; 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 datacenter 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; our failure to maintain our 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 with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and subsequent reports on Form 10-Q and Form 8-K. 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 | Matt Mercier | |
| Chief Financial Officer and | Vice President, Corporate Finance | |
| Chief Investment Officer | Digital Realty Trust, Inc. | |
| Digital Realty Trust, Inc. | +1 (415) 738-6500 | |
| +1 (415) 738-6500 | ||
SOURCE Digital Realty Trust, Inc.
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