SAN FRANCISCO, Jan. 31 /PRNewswire-FirstCall/ — Digital Realty
Trust, Inc. (NYSE: DLR) today announced the pricing of an underwritten public
offering of 12,000,000 shares of Series D Cumulative Convertible Preferred
Stock at $24.25 per share for estimated gross proceeds of $291,000,000. The
shares of Series D Cumulative Convertible Preferred Stock will be convertible
for shares of Digital Realty Trust common stock. The offering was made
pursuant to its shelf registration statement filed with the Securities and
Exchange Commission and is expected to close on February 6, 2008, subject to
customary closing conditions. Digital Realty Trust has granted the
underwriters an option to purchase up to an additional 1,800,000 shares of its
Series D Cumulative Convertible Preferred Stock, within 30 days of the initial
issuance of the shares, solely to cover over-allotments.
The Series D Cumulative Convertible Preferred Stock will pay dividends
quarterly at a rate of 5.500% per year. The preferred shares will be
convertible, at the holder’s option, at an initial conversion rate of 0.5955
common shares per $25.00 liquidation preference per preferred share (or an
initial conversion price of $41.98 per common share), subject to adjustment
upon the occurrence of certain events. The initial conversion price
represents a 17.5% conversion premium over the closing sale price of the
Company’s common shares on January 31, 2008 on the New York Stock Exchange,
which was $35.73 per share.
The Company estimates the net proceeds from this offering will be
approximately $290 million (or $333.6 million if the over-allotment option is
exercised in full) after deducting discounts, commissions and estimated
expenses. Digital Realty Trust intends to utilize the net proceeds from the
offering to temporarily repay borrowings under its revolving credit facility,
to fund acquisitions, to fund redevelopment activities and for general
corporate purposes. Consistent with Digital Realty Trust’s growth strategy,
Digital Realty Trust is actively pursuing multiple opportunities for potential
acquisitions, with due diligence and negotiations at different stages of
advancement. Digital Realty Trust intends to reborrow amounts under its
revolving credit facility from time to time to acquire additional properties,
to fund development and redevelopment activities and for general corporate
purposes.
Citi and Credit Suisse Securities (USA) LLC were the joint book-running
managers for the offering. A final prospectus supplement related to the public
offering will be filed with the Securities and Exchange Commission. Copies of
the final prospectus supplement, when available, may be obtained from Citi
(Attention Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th
floor, Brooklyn, NY 11220) or from Credit Suisse Securities (USA) LLC
(Prospectus Department, One Madison Avenue, New York, NY 10010). This press
release shall not constitute an offer to sell or a solicitation of an offer to
buy nor shall there be any sale of these securities in any state in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any state. The offering may be made
only by means of a prospectus and related prospectus supplement.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and
manages technology-related real estate. The Company is focused on providing
Turn-Key Datacenter(TM) and Powered Base Building(TM) datacenter solutions for
domestic and international tenants across a variety of industry verticals
ranging from information technology and internet enterprises, to manufacturing
and financial services. Digital Realty Trust’s 70 properties, excluding one
property held as an investment in an unconsolidated joint venture, contain
applications and operations critical to the day-to-day operations of
technology industry tenants and corporate enterprise datacenter tenants.
Comprising approximately 12.3 million rentable square feet, including 1.8
million square feet of space held for redevelopment, Digital Realty Trust’s
portfolio is located in 26 markets throughout North America and Europe.
For Additional Information:
A. William Stein Pamela A. Matthews
Chief Financial Officer and Investor/Analyst Information
Chief Investment Officer Digital Realty Trust, Inc.
Digital Realty Trust, Inc. (415) 738-6532
(415) 738-6500
SOURCE Digital Realty Trust, Inc.