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Digital Realty Commences $300M Public Offering

SAN FRANCISCO-The proceeds will be used to repay borrowings under its credit facility, which will allow it to re-borrow the money for upcoming acquisitions, developments and redevelopment.

By Brian K. Miller | Updated on January 31, 2008

SAN FRANCISCO-Datacenter REIT Digital Realty Trust Inc. is commencing an underwritten public offering of 12 million shares of Series D Cumulative Convertible Preferred Stock for estimated gross proceeds of $300,000,000, which roughly equates to $25 per share. The shares will be convertible for shares of Digital Realty Trust common stock, which closed the trading day Thursday at $35.76, down 3%.

Citi and Credit Suisse Securities (USA) LLC will be the joint book-running managers and the underwriters for the offering. The dividend rate, conversion rate and offering price are being negotiated with the underwriters and had not been announced as of Thursday evening. The underwriters hold an option for an additional 1.8 million shares to cover over-allotments.

Digital Realty says the proceeds will be used to repay borrowings under its credit facility. It will then use the freed-up credit to for upcoming acquisitions, developments and redevelopment. The company says it is “actively pursuing multiple opportunities for potential acquisitions, with due diligence and negotiations at different stages of advancement.”

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