Digital Realty Announces Pricing of Preferred Stock Offering

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Mar 04, 2019, 16:49 ET

SAN FRANCISCO, March 4, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today the pricing of an underwritten public offering of 8,000,000 shares of 5.850% Series K Cumulative Redeemable Preferred Stock with a liquidation preference of $25.00 per share for gross proceeds of $200 million. The company has also granted the underwriters a 30‐day option to purchase from the company up to an additional 1,200,000 shares solely to cover over-allotments.

The preferred stock offering is expected to close on March 13, 2019, subject to customary closing conditions.

The company intends to use the net proceeds from the offering of the preferred stock to repay borrowings outstanding under the operating partnership's global revolving credit facility, acquire additional properties or businesses, fund development opportunities, and to provide for working capital and other general corporate purposes, including potentially for the repayment of other debt or the repurchase, redemption, or retirement of outstanding debt securities or preferred stock, or a combination of the foregoing.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint book-running managers for the preferred stock offering.

The preferred stock offering was made under an effective shelf registration statement filed with the Securities and Exchange Commission. A copy of the prospectus supplement and accompanying prospectus relating to the offering of the preferred stock will be filed with the SEC and will be available by visiting the EDGAR database on the SEC's website at www.sec.gov or by contacting:

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Attn: Prospectus Department
200 North College Street
NC1-004-03-43
Charlotte, NC 28255
(800) 294-1322
[email protected]

Morgan Stanley & Co. LLC
1585 Broadway, 29^th Floor
New York, NY 10036
(866) 718-1649
[email protected]

Wells Fargo Securities, LLC
Attn: WFS Customer Service 608 2nd Avenue South
Minneapolis, MN 55402
(800) 645-3751
[email protected]

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the preferred stock or any other securities, nor shall there be any offer, solicitation or sale of preferred stock or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Digital Realty

Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 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, social networking and communications 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 / Maria S. Lukens
Digital Realty
(415) 738-6500
[email protected]

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, including statements related to the timing and consummation of the offering of the preferred stock and the expected use of the net proceeds. The Company can provide no assurances that it will be able to complete the offering on the anticipated terms, or at all. For a further list and description of such risks and uncertainties, see the company's reports and other filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2018. Digital Realty disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Digital Realty