UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 10, 2019
DIGITAL REALTY TRUST, INC.
DIGITAL REALTY TRUST, L.P.
(Exact name of registrant as specified in its charter)
Maryland | 001-32336 | 26-0081711 | ||
Maryland | 000-54023 | 20-2402955 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
Four Embarcadero Center, Suite 3200 San Francisco, California |
94111 | |||
(Address of principal executive offices) | (Zip Code) |
(415) 738-6500
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered | ||
Common Stock | DLR | New York Stock Exchange | ||
Series C Cumulative Redeemable Perpetual Preferred Stock | DLR Pr C | New York Stock Exchange | ||
Series G Cumulative Redeemable Preferred Stock | DLR Pr G | New York Stock Exchange | ||
Series I Cumulative Redeemable Preferred Stock | DLR Pr I | New York Stock Exchange | ||
Series J Cumulative Redeemable Preferred Stock | DLR Pr J | New York Stock Exchange | ||
Series K Cumulative Redeemable Preferred Stock | DLR Pr K | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Digital Realty Trust, Inc.: | Emerging growth company ☐ | |
Digital Realty Trust, L.P.: | Emerging growth company ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Digital Realty Trust, Inc.: ☐
Digital Realty Trust, L.P.: ☐
Introductory Note
Unless otherwise indicated or unless the context requires otherwise, all references in this report to we, us, our, our company, the company or Digital Realty refer to Digital Realty Trust, Inc., together with its consolidated subsidiaries, including Digital Realty Trust, L.P., our operating partnership.
Item 7.01. Regulation FD Disclosure.
On June 10, 2019, Digital Realty issued a press release announcing that its operating partnership has commenced a cash tender offer (the Tender Offer) for (i) any and all of its 3.400% Notes due 2020 (the 2020 Notes) and (ii) any and all of its 5.250% Notes due 2021 (the 2021 Notes, and, together with the 2020 Notes, the Notes). The complete terms and conditions of the Tender Offer are set forth in an offer to purchase and notice of guaranteed delivery (collectively, the Tender Offer Documents) that will be sent to registered holders of the Notes and be posted online at www.gbsc-usa.com/DigitalRealty. The Tender Offer will expire at 5:00 p.m., New York City time, on June 14, 2019, unless extended or earlier terminated (the Expiration Time).
The applicable consideration for each $1,000 principal amount of Notes validly tendered and accepted for purchase pursuant to the Tender Offer will be determined in the manner described in the Tender Offer Documents by reference to the applicable fixed spread for such Notes plus the yield based on the bid-side price of the applicable U.S. Treasury Reference Security at 2:00 p.m., New York City time, on June 14, 2019, unless extended.
Holders will also receive accrued and unpaid interest on the Notes validly tendered and accepted for purchase from the applicable last interest payment date up to, but not including, the date the operating partnership initially makes payment for such Notes, which date is anticipated to be June 17, 2019 (the Settlement Date). Notes tendered by notice of guaranteed delivery and accepted for purchase will be purchased on the third business day after the Expiration Time, but payment of accrued interest on such Notes will only be made to, but not including, the Settlement Date.
A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1) shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the company or the operating partnership under the Exchange Act or the Securities Act of 1933, as amended (the Securities Act), except as shall be expressly set forth by specific reference in such a filing.
Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K contains certain forward-looking statements as that term is defined by Section 27A of the Securities Act and Section 21E of the Exchange Act. Statements that are predictive in nature, that depend on or relate to future events or conditions, or that include words such as believes, anticipates, expects, may, will, would, should, estimates, could, intends, plans or other similar expressions are forward-looking statements. Forward-looking statements involve significant known and unknown risks and uncertainties that may cause the companys actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements as a result of, but not limited to, the following factors: timing and consummation of the purchase of Notes; risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the purchase of Notes; and the impact of legislative, regulatory and competitive changes and other risk factors relating to the industries in which we operate, as detailed from time to time in each of our reports filed with the SEC. There can be no assurance that the proposed transactions will be consummated on the terms described herein or at all.
The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. We discussed a number of additional material risks in our annual report on Form 10-K for the year ended December 31, 2018 and other filings with the Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description | |
99.1 | Press Release of Digital Realty dated June 10, 2019 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
Date: June 10, 2019
Digital Realty Trust, Inc. | ||
By: | /s/ Joshua A. Mills | |
Joshua A. Mills | ||
Executive Vice President, General Counsel and Secretary | ||
Digital Realty Trust, L.P. | ||
By: | Digital Realty Trust, Inc. | |
Its general partner | ||
By: | /s/ Joshua A. Mills | |
Joshua A. Mills | ||
Executive Vice President, General Counsel and Secretary |
Exhibit 99.1
![]() |
Four Embarcadero Center, Suite 3200 San Francisco, CA 94111 TEL: (415) 738-6500 FAX: (415) 738-6501
www.digitalrealty.com |
Digital Realty Announces Tender Offer for Any and All of
Digital Realty Trust, L.P.s Outstanding 3.400% Notes Due 2020 and 5.250% Notes Due 2021
San Francisco, CA June 10, 2019 Digital Realty Trust, Inc. (NYSE: DLR)(Digital Realty) announced today that Digital Realty Trust, L.P. (the Issuer), its operating partnership subsidiary, has commenced a cash tender offer for (i) any and all of its outstanding 3.400% Notes due 2020 (CUSIP No. 25389JAN6) (the 2020 Notes) and (ii) any and all of its outstanding 5.250% Notes due 2021 (CUSIP No. 25389JAJ5) (the 2021 Notes, and together with the 2020 Notes, the Notes), on the terms and subject to the conditions set forth in the Offer to Purchase, dated the date hereof (the Offer to Purchase) and the related Notice of Guaranteed Delivery attached to the Offer to Purchase (the Notice of Guaranteed Delivery). The Notes are fully and unconditionally guaranteed by Digital Realty. As of June 7, 2019, there were $500,000,000 aggregate principal amount of 2020 Notes outstanding and $400,000,000 aggregate principal amount of the 2021 Notes outstanding . The tender offer is referred to herein as the Offer. The Offer to Purchase and the Notice of Guaranteed Delivery are referred to herein collectively as the Offer Documents.
Certain information regarding the Notes and the pricing for the Offer is set forth in the table below.
Title of Security |
CUSIP Number |
Principal Amount Outstanding |
U.S. Treasury Reference Security |
Bloomberg Reference Page |
Fixed Spread |
Hypothetical Tender Offer Consideration (1)(2) |
||||||||||
3.400% Notes due 2020 |
25389JAN6 | $ | 500,000,000 | 1.375% U.S. Treasury due 9/15/2020 |
FIT4 | 30 bps | $ | 1,013.56 | ||||||||
5.250% Notes due 2021 |
25389JAJ5 | $ | 400,000,000 | 1.875% U.S. Treasury due 12/15/2020 |
FIT4 | 30 bps | $ | 1,044.15 |
(1) | Per $1,000 principal amount. |
(2) | Hypothetical Tender Offer Consideration (as defined below) calculated on the basis of pricing for the applicable U.S. Treasury Reference Security as of 2:00 p.m., New York City time, on June 7, 2019 and a Settlement Date (as defined below) on June 17, 2019. The actual applicable Tender Offer Consideration for each series of Notes payable pursuant to the Offer will be calculated and determined as set forth in the Offer to Purchase. |
Holders must validly tender (and not validly withdraw) or deliver a properly completed and duly executed Notice of Guaranteed Delivery for their Notes at or before the Expiration Time (as defined below) in order to be eligible to receive the applicable Tender Offer Consideration. In addition, holders whose Notes are purchased in the Offer will receive accrued and unpaid interest from the last interest payment date to, but not including, the Settlement Date (as defined in the Offer to Purchase) for the applicable Notes. The Issuer expects the Settlement Date to occur on June 17, 2019. Notes tendered by Notice of Guaranteed Delivery and accepted for purchase will be purchased on the third business day after the Expiration Date, but payment of accrued interest on such Notes will only be made to, but not including, the Settlement Date.
The Offer will expire at 5:00 p.m., New York City time, on June 14, 2019 (such time and date, as it may be extended, the Expiration Time), unless extended or earlier terminated by the Issuer. The Notes tendered may be withdrawn at any time at or before the Expiration Time by following the procedures described in the Offer to Purchase.
The Issuers obligation to accept for purchase and to pay for the Notes validly tendered and not validly withdrawn pursuant to the Offer is subject to the satisfaction or waiver, in the Issuers discretion, of certain conditions, which are more fully described in the Offer to Purchase, including, among others, the Issuers receipt of aggregate proceeds (before underwriters discounts and commissions and other offering expenses) from an offering of new senior unsecured notes, on terms satisfactory to the Issuer. The complete terms and conditions of the Offer are set forth in the Offer Documents. Holders of the Notes are urged to read the Offer Documents carefully.
The applicable Tender Offer Consideration for each $1,000 principal amount of Notes validly tendered and accepted for purchase pursuant to the Offer will be determined in the manner described in the Tender Offer Documents by reference to the applicable fixed spread specified for such Notes specified in the table above plus the yield based on the bid-side price of the applicable U.S. Treasury Reference Security specified in the table above at 2:00 p.m., New York City time, on June 14, 2019, unless extended or earlier terminated.
The Issuer has retained Global Bondholder Services Corporation as the tender agent and information agent for the Offer. The Issuer has retained J.P. Morgan Securities LLC (J.P. Morgan) as the dealer manager for the Offer.
Holders who would like additional copies of the Offer Documents may call or email the information agent, GBSC at (866) 924-2200. Copies of the Offer to Purchase and Notice of Guaranteed Delivery are also available at the following website: http://www.gbsc-usa.com/DigitalRealty. Questions regarding the terms of the Offer should be directed to J.P. Morgan at (866) 834-4666 (toll-free) or (212) 834-6950 (collect).
This press release shall not constitute an offer to buy or a solicitation of an offer to sell any Notes. The Offer is being made solely pursuant to the Offer Documents. The Offer is not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Offer to be made by a licensed broker or dealer, the Offers will be deemed to be made on behalf of the Issuer by J.P. Morgan or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, Asia and Australia. Digital Realtys clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking 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
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com