Digital Realty Trust 8-K

Summary

CHF-denominated bond offering closed. Digital Realty issued CHF510M of senior unsecured notes across three maturities, fully and unconditionally guaranteed by the company, its operating partnership and a subsidiary. The net proceeds are intended to fund or refinance projects consistent with its Green Bond Framework; pending allocation, they may be used for other corporate purposes.

Key Figures

• Principal and terms: CHF225M at 1.6803%, due 10/08/2029; CHF185M at 2.0600%, due 10/06/2032; and CHF100M at 2.4150%, due 10/06/2036. Interest is payable annually; purchasers paid 100% of principal.
• Net proceeds: CHF508M after commissions and offering expenses. The notes include covenants limiting additional indebtedness and requiring a pool of unencumbered assets.

Investor Takeaways

• Watch the allocation of an amount equal to net proceeds to projects consistent with the Green Bond Framework; until then, proceeds may temporarily support other stated uses, including repaying revolving-credit borrowings.