Digital Realty Trust, L.P. - the operating partnership entity of
Digital Realty Trust, Inc. (
a real estate investment trust (REIT), has recently priced an
underwritten public offering of 3.625% senior unsecured notes worth
$300 million. The notes are scheduled to mature in October 2022 and
are priced at 98.684% of their par value .
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The notes will feature semiannual interest payment on the first day
of the months of April and October each year. The interest payouts
will commence on April 1, 2013.
J.P. Morgan - part of
J.P Morgan Chase & Co (
Morgan Stanley (
- a global financial firm; Credit Suisse - part of
Credit Suisse Group (
; Goldman, Sachs & Co - part of
The Goldman Sachs Group, Inc (
; and Citigroup - part of
Citigroup, Inc (
acted as joint book-running managers for the offering.
The net proceeds from the debt offering are expected to be utilized
by the operating partnership to repay debt including all or a
portion of outstanding borrowings under the existing revolving
credit facility, for acquisitions and redevelopments and for other
general corporate purposes.
At the end of second quarter 2012, cash and cash equivalents for
the company stood at $47.7 million. The company had $324.4 million
debt outstanding on its global revolving credit facility as of June
30, 2012. Unsecured term loan stood at $520.9 million, while total
debt aggregated $3.4 billion. . This strategic move aims to provide
Digital Realty provides flexible and cost effective data center
facilities to a wide range of customers, including domestic and
international companies across multiple industry verticals. At
present the company's portfolio includes 109 properties totaling
approximately 21.1 million square feet of space (including 2.2
million square feet of redevelopment space).
Digital Realty currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We also have a long-term Neutral
recommendation on the stock.