SAN FRANCISCO, June 14, 2019 /PRNewswire/ -- Digital
Realty Trust, Inc. (NYSE: DLR) ("Digital Realty") announced today
the expiration of the previously announced cash tender offer ("the
Offer") by Digital Realty Trust, L.P. ("the Issuer"), its operating
partnership subsidiary, for any and all of its outstanding 3.400%
notes due 2020 (CUSIP No. 25389JAN6, "the 2020 Notes") and any
and all of its outstanding 5.250% notes due 2021 (CUSIP No.
25389JAJ5, "the 2021 Notes," and together with the 2020 Notes, "the
Notes"). The Offer expired at 5:00
p.m., New York City time,
on Friday, June 14, 2019 ("the
Expiration Date"). As of the expiration of the Offer,
$445,863,000 or 89.17% of the
$500,000,000 aggregate principal
amount of the 2020 Notes and $283,405,000 or 70.85% of the $400,000,000 aggregate principal amount of the
2021 Notes had been validly tendered and not withdrawn in the
Offer. The Issuer accepted for purchase all the Notes validly
tendered and delivered (and not validly withdrawn) in the Offer at
or prior to the Expiration Date. Payment for the Notes
purchased pursuant to the Offer is intended to be made on
June 17, 2019 ("the Settlement Date")
or June 19, 2019 ("the Guaranteed
Delivery Settlement Date"), as applicable.
The consideration to be paid under the Offer will be
$1,013.38 per $1,000 principal amount of 2020 Notes and
$1,044.01 per $1,000 principal amount of 2021 Notes, plus
accrued and unpaid interest to, but not including, the Settlement
Date or Guaranteed Delivery Settlement Date, as applicable.
The total Offer consideration of $754,708,957.22, including accrued and unpaid
interest, will be funded from a portion of the net proceeds from
the previously announced issuance and sale by the Issuer of its
U.S. dollar-denominated 3.600% Notes due 2029.
The Offer was made pursuant to the Issuer's Offer to Purchase
dated June 10, 2019 and Notice of
Guaranteed Delivery. J.P. Morgan Securities LLC acted as
Dealer Manager for the Offer. This press release is neither
an offer to purchase nor a solicitation to buy any of the Notes nor
is it a solicitation for acceptance of the Offer.
The Issuer intends to redeem all the Notes that have not been
tendered in the Offer and the anticipated redemption date will be
July 17, 2019.
About Digital Realty
Digital Realty supports the data
center, colocation and interconnection strategies of more than
2,000 firms across its secure, network-rich portfolio of data
centers located throughout North
America, Europe,
Latin America, Asia and Australia. Digital Realty's
clients include domestic and international companies of all sizes,
ranging from cloud and information technology services,
communications and social networking to financial services,
manufacturing, energy, healthcare and consumer products.
For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
Investor Relations
John J.
Stewart
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com
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.
These risks and uncertainties include, among others, the
following: the competitive environment in which we operate; reduced
demand for data centers or decreases in information technology
spending; decreased rental rates, increased operating costs or
increased vacancy rates; increased competition or available supply
of data center space; the suitability of our data centers and data
center infrastructure, delays or disruptions in connectivity or
availability of power, or failures or breaches of our physical and
information security infrastructure or services; our dependence
upon significant customers, bankruptcy or insolvency of a major
customer or a significant number of smaller customers, or defaults
on or non-renewal of leases by customers; breaches of our
obligations or restrictions under our contracts with our customers;
our inability to successfully develop and lease new properties and
development space, and delays or unexpected costs in development of
properties; the impact of current global and local economic, credit
and market conditions; our inability to retain data center space
that we lease or sublease from third parties; difficulties managing
an international business and acquiring or operating properties in
foreign jurisdictions and unfamiliar metropolitan areas; our
failure to realize the intended benefits from, or disruptions to
our plans and operations or unknown or contingent liabilities
related to, our recent acquisitions; our failure to successfully
integrate and operate acquired or developed properties or
businesses; difficulties in identifying properties to acquire and
completing acquisitions; risks related to joint venture
investments, including as a result of our lack of control of such
investments; 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; our failure to obtain necessary
debt and equity financing, and our dependence on external sources
of capital; financial market fluctuations and changes in foreign
currency exchange rates; 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 and goodwill and other intangible asset
impairment charges; our inability to manage our growth effectively;
losses in excess of our insurance coverage; environmental
liabilities and risks related to natural disasters; the expected
operating performance of recent acquisitions and descriptions
relating to these expectations; our inability to comply with rules
and regulations applicable to our company; our failure to maintain
our status as a REIT for U.S. federal income tax purposes; our
operating partnership's failure to qualify as a partnership for
U.S. federal income tax purposes; restrictions on our ability to
engage in certain business activities; changes in local, state,
federal and international laws and regulations, including related
to taxation, real estate and zoning laws, and increases in real
property tax rates; changes in the business or financial condition
of us or our business; our ability to deliver high-quality
properties and services, to attract and retain qualified personnel
and to attract and retain customers; and the impact of any
financial, accounting, legal or regulatory issues or litigation
that may affect us. 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, 2018 and Quarterly
Report on Form 10-Q for the quarter ended March 31, 2019. 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.
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SOURCE Digital Realty Trust, Inc.