Digital Realty Trust 8-K

Summary

Euro-denominated green-bond financing. Digital Euro Finco, an indirect subsidiary, issued €1.0B of notes guaranteed by Digital Realty Trust and its operating partnership; proceeds are intended to finance or refinance eligible green projects.

Key Figures

• €1.0B principal amount; 5.125% annual interest; maturity 10/09/2036, with interest payable annually starting 10/09/2027.
• Purchase price: 99.289% of principal; net proceeds: ≈€985.8M after discounts and estimated offering expenses.
• Senior unsecured notes, fully and unconditionally guaranteed by Digital Realty Trust and the operating partnership. Covenants limit additional indebtedness and require a pool of unencumbered assets.
• Pending allocation to eligible green projects, proceeds may be used for temporary repayment of revolving-credit borrowings, property or business acquisitions, development, or other general corporate purposes.

Investor Takeaways

• The intended allocation of an amount equal to the net proceeds to eligible green projects is the key use-of-proceeds outcome to monitor.