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 Jan. 31, 2008 on the New York Stock Exchange, which was $35.73 per share.

Assuming underwriters Citi and Credit Suisse Securities (USA) LLC need the additional 1.8 million shares that will be offered up to cover over-allotments, the estimated net proceeds will be $333.6 million. 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."

At Dec. 31, Digital Realty's revolving credit facility had a total outstanding balance of $299.7 million, excluding committed letters of credit, consisting of $111.0 million bearing interest at Libor plus 1.2% per annum, which equaled a rate of 6.12%; €57.7 million bearing interest at Euribor plus 1.2% per annum, which equaled a rate of 5.86%; and £51.5 million bearing interest at GBP Libor plus 1.2% per annum, which equaled a rate of 7.55%.