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Digital Realty Increases, Prices Offering

SAN FRANCISCO-The datacenter REIT increases its offering by a million shares and prices the shares at $39.38 apiece, which with the over-allotment option would net the company $150.5 million.

By Brian K. Miller | Updated on October 17, 2007

SAN FRANCISCO-Digital Realty Trust has increased its offering to 3.5 million shares and priced the shares at $39.38 apiece. The offering is expected to close on October 22, 2007. A source with the datacenter REIT tells GlobeSt.com the company’s board increased the offering from the 2.5 million shares announced last week “based on demand.” Net proceeds (after approximately $7 million in underwriting discounts, commissions and estimated offering expenses) are expected to be $130.8 million, $150.5 million if the underwriters’ 525,000-share over-allotment option is exercised in full. Merrill Lynch & Co. and Credit Suisse Securities (USA) LLC will serve as joint book running managers for the offering.

Digital Realty Trust owns 66 properties comprising approximately 11.9 million sf (net rentable). The portfolio is spread throughout North America and Europe. The company says it will use the proceeds to temporarily repay borrowings under its credit facility, ultimately allowing it to borrow the money again for additional acquisitions, development and redevelopment opportunities.

In early September, the company modified, extended and expanded its senior unsecured revolving credit facility, increasing the total capacity to $650 million from $500 million and gaining the option to expand it by another $100 million. The company said it would use the additional dollars for acquisitions and development, working capital and general corporate purposes.

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