Debt of the Operating Partnership

A summary of outstanding indebtedness of the Operating Partnership as of December 31, 2017 and 2016 is as follows (in thousands):



Indebtedness	Interest Rate at December 31, 2017		Maturity Date		Principal Outstanding December 31, 2017				Principal Outstanding December 31, 2016
Global revolving credit facility	Various	⁽¹⁾	Jan 15, 2020	⁽¹⁾	$	558,191		⁽²⁾	$	210,077		⁽²⁾
Deferred financing costs, net					(7,245		)		(10,868		)
Global revolving credit facility, net					550,946				199,209
Unsecured Term Loans
Unsecured term loan — 5-year	Various	⁽³⁾⁽⁴⁾	Jan 15, 2021		1,125,117			⁽⁵⁾	1,188,498			⁽⁵⁾
Unsecured term loan — 7-year	Various	⁽³⁾⁽⁴⁾	Jan 15, 2023		300,000			⁽⁵⁾	300,000			⁽⁵⁾
Deferred financing costs, net					(4,784		)		(6,137		)
Unsecured term loans, net					1,420,333				1,482,361
Unsecured senior notes:
Prudential Shelf Facility:
Series E	5.730%		Jan 20, 2017	⁽⁶⁾	—				50,000
Total Prudential Shelf Facility					—				50,000
Senior Notes:
Floating rate notes due 2019	EURIBOR + 0.500%		May 22, 2019		150,063			⁽⁷⁾	—
5.875% notes due 2020	5.875%		Feb 1, 2020		500,000				500,000
3.400% notes due 2020	3.400%		Oct 1, 2020		500,000				500,000
5.250% notes due 2021	5.250%		Mar 15, 2021		400,000				400,000
5.875% notes due 2021	5.875%		Sep 15, 2021		—			⁽⁹⁾	—
3.950% notes due 2022	3.950%		Jul 1, 2022		500,000				500,000
3.625% notes due 2022	3.625%		Oct 1, 2022		300,000				300,000
2.750% notes due 2023	2.750%		Feb 1, 2023		350,000				—
5.625% notes due 2023	5.625%		Jun 15, 2023		—			⁽⁹⁾	—
4.750% notes due 2023	4.750%		Oct 13, 2023		405,390			⁽⁸⁾	370,200			⁽⁸⁾
2.625% notes due 2024	2.625%		Apr 15, 2024		720,300			⁽⁷⁾	631,020			⁽⁷⁾
2.750% notes due 2024	2.750%		Jul 19, 2024		337,825			⁽⁸⁾	—
4.250% notes due 2025	4.250%		Jan 17, 2025		540,520			⁽⁸⁾	493,600			⁽⁸⁾
4.750% notes due 2025	4.750%		Oct 1, 2025		450,000				450,000
3.700% notes due 2027	3.700%		Aug 15, 2027		1,000,000				—
3.300% notes due 2029	3.300%		Jul 19, 2029		472,955			⁽⁸⁾	—
Unamortized discounts					(18,508		)		(15,649		)
Total senior notes, net of discount					6,608,545				4,129,171
Deferred financing costs, net					(37,788		)		(25,374		)
Total unsecured senior notes, net of discount and deferred financing costs					6,570,757				4,153,797

Mortgage loans:
731 East Trade Street	8.22%		Jul 1, 2020		2,370				2,916
Secured note due 2023	LIBOR + 1.100%	⁽⁴⁾	Mar 1, 2023		104,000				—
Unamortized net premiums					241				334
Total mortgage loans, including premiums					106,611				3,250
Deferred financing costs, net					(29		)		(10		)
Total mortgage loans, including premiums and net of deferred financing costs					106,582				3,240
Total indebtedness					$	8,648,618			$	5,838,607

(1)

The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin of 100 basis points, which is based on the current credit ratings of our long-term debt. An annual facility fee of 20 basis points, which is based on the credit ratings of our long-term debt, is due and payable quarterly on the total commitment amount of the facility. Two six-month extensions are available, which we may exercise if certain conditions are met.


(2)	Balances as of December 31, 2017 and December 31, 2016 are as follows (balances, in thousands):



Denomination of Draw	Balance as of December 31, 2017			Weighted-average interest rate		Balance as of December 31, 2016			Weighted-average interest rate
Floating Rate Borrowing (a)
U.S. dollar ($)	$	400,000		2.48	%	$	105,000		1.67	%
British pound sterling (£)	18,918		(c)	1.50	%	11,106		(d)	1.25	%
Euro (€)	31,213		(c)	0.62	%	15,250		(d)	0.63	%
Hong Kong dollar (HKD)	4,100		(c)	2.20	%	1,728		(d)	1.66	%
Japanese yen (JPY)	65,890		(c)	0.96	%	54,273		(d)	0.92	%
Singapore dollar (SGD)	—			—	%	11,186		(d)	1.52	%
Canadian dollar (CAD)	23,070		(c)	2.36	%	11,534		(d)	1.92	%
Total	$	543,191		2.15	%	$	210,077		1.39	%
Base Rate Borrowing (b)
U.S. dollar ($)	$	15,000		4.50	%	$	—		—	%
Total borrowings	$	558,191		2.21	%	$	210,077		1.39	%


(a)	The interest rates for floating rate borrowings under the global revolving credit facility currently equal the applicable index plus a margin of 100 basis points, which is based on the credit rating of our long-term debt.


(b)	The interest rates for base rate borrowings under the global revolving credit facility equal the U.S. Prime Rate.


(c)	Based on exchange rates of $1.35 to £1.00, $1.20 to €1.00, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY and $0.80 to 1.00 CAD, respectively, as of December 31, 2017.


(d)	Based on exchange rates $1.23 to £1.00, of $1.05 to €1.00, $0.13 to 1.00 HKD, $0.01 to 1.00 JPY, $0.69 to 1.00 SGD and $0.74 to 1.00 CAD, respectively, as of December 31, 2016.


(3)	Interest rates are based on our current senior unsecured debt ratings and are 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively.


(4)	We have entered into interest rate swap agreements as a cash flow hedge for interest generated by the U.S. dollar, Singapore dollar, British pound sterling and Canadian dollar tranches of the unsecured term loans along with the secured note due 2023. See Note 15. "Derivative Instruments" for further information.


(5)	Balances as of December 31, 2017 and December 31, 2016 are as follows (balances, in thousands):



Denomination of Draw	Balance as of December 31, 2017			Weighted-average interest rate			Balance as of December 31, 2016			Weighted-average interest rate
U.S. dollar ($)	$	606,911		2.78	%	(b)	$	710,911		1.99	%	(d)
British pound sterling (£)	229,011		(a)	1.59	%	(b)	209,132		(c)	1.36	%	(d)
Singapore dollar (SGD)	233,788		(a)	2.17	%		222,824		(c)	1.76	%	(d)
Australian dollar (AUD)	179,841		(a)	2.79	%		170,325		(c)	2.72	%
Hong Kong dollar (HKD)	85,762		(a)	2.20	%		86,029		(c)	1.77	%
Canadian dollar (CAD)	78,357		(a)	2.44	%	(b)	73,294		(c)	2.00	%	(d)
Japanese yen (JPY)	11,447		(a)	1.05	%		15,983			0.98	%
Total	$	1,425,117		2.42	%	(b)	$	1,488,498		1.93	%	(d)


(a)	Based on exchange rates of $1.35 to £1.00, $0.75 to 1.00 SGD, $0.78 to 1.00 AUD, $0.13 to 1.00 HKD, $0.80 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of December 31, 2017.


(b)	As of December 31, 2017, the weighted-average interest rate reflecting interest rate swaps was 2.72% (U.S. dollar), 1.89% (British pound sterling), 1.88% (Canadian dollar) and 2.41% (Total). See Note 15 for further discussion on interest rate swaps.


(c)	Based on exchange rates of $1.23 to £1.00, $0.69 to 1.00 SGD, $0.72 to 1.00 AUD,$0.13 to 1.00 HKD, $0.74 to 1.00 CAD and $0.01 to 1.00 JPY, respectively, as of December 31, 2016.


(d)	As of December 31, 2016, the weighted-average interest rate reflecting interest rate swaps was 2.45% (U.S. dollar), 1.89% (British pound sterling), 1.90% (Singapore dollar), 1.88% (Canadian dollar) and 2.23% (Total). See Note 15 for further discussion on interest rate swaps.


(6)	Unsecured note paid in full at maturity.


(7)	Based on exchange rates of $1.20 to €1.00 as of December 31, 2017 and $1.05 to €1.00 as of December 31, 2016.


(8)	Based on exchange rates of $1.35 to £1.00 as of December 31, 2017 and $1.23 to £1.00 as of December 31, 2016.

(9)

In connection with the DFT merger, Digital Realty Trust, Inc. was added as a guarantor of the DFT Operating Partnership's 5.875% 2021 Notes and 5.625% 2023 Notes. We recorded the notes at fair value on the date of the merger as follows: $620.5 million for the 5.875% 2021 Notes and $266.3 million for the 5.625% 2023 Notes. These notes were redeemed in September 2017 and October 2017 for $884.9 million in the aggregate resulting in a gain on early extinguishment of debt of approximately $2.0 million.

Global Revolving Credit Facility

On January 15, 2016, we refinanced our global revolving credit facility and entered into a global senior credit agreement for a $2.0 billion senior unsecured revolving credit facility, which we refer to as the global revolving credit facility, that replaced the $2.0 billion revolving credit facility executed on August 15, 2013, as amended. The global revolving credit facility has an accordion feature that would enable us to increase the borrowing capacity of the credit facility to up to $2.5 billion, subject to the receipt of lender commitments and other conditions precedent. The refinanced facility matures on January 15, 2020, with two six-month extension options available. The interest rate for borrowings under the global revolving credit facility equals the applicable index plus a margin which is based on the credit ratings of our long-term debt and is currently 100 basis points. An annual facility fee on the total commitment amount of the facility, based on the credit ratings of our long-term debt, currently 20 basis points, is payable quarterly. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. As of December 31, 2017, interest rates are based on 1-month LIBOR, 1-month GBP LIBOR, 1-month EURIBOR, 1-month HIBOR, 1-month JPY LIBOR and 1-month CDOR, plus a margin of 1.00%. The facility also bore a base borrowing rate of 4.50% (USD) which is based on the U.S. Prime Rate. We have used and intend to use available borrowings under the global revolving credit facility to acquire additional properties, fund development opportunities and for general working capital and other corporate purposes, including potentially for the repurchase, redemption or retirement of outstanding debt or equity securities. As of December 31, 2017, approximately $22.8 million of letters of credit were issued.

The global revolving credit facility contains various restrictive covenants, including limitations on our ability to incur additional indebtedness, make certain investments or merge with another company, and requirements to maintain financial coverage ratios, including with respect to unencumbered assets. In addition, the global revolving credit facility restricts Digital Realty Trust, Inc. from making distributions to its stockholders, or redeeming or otherwise repurchasing shares of its capital stock, after the occurrence and during the continuance of an event of default, except in limited circumstances including as necessary to enable Digital Realty Trust, Inc. to maintain its qualification as a REIT and to minimize the payment of income or excise tax. As of December 31, 2017, we were in compliance with all of such covenants.

Unsecured Term Loans

On January 15, 2016, we refinanced our senior unsecured multi-currency term loan facility and entered into a term loan agreement, which governs (i) a $1.25 billion 5-year senior unsecured term loan, which we refer to as the 5-Year Term Loan, and (ii) a $300 million 7-year senior unsecured term loan, which we refer to as the 7-Year Term Loan. The 2016 term loan agreement replaced the $1.0 billion term loan agreement executed on April 16, 2012, as amended. The 5-Year Term Loan matures on January 15, 2021 and the 7-Year Term Loan matures on January 15, 2023. In addition, we have the ability from time to time to increase the aggregate size of lending under the term loan agreement from $1.55 billion to up to $1.8 billion, subject to receipt of lender commitments and other conditions precedent. Interest rates are based on our senior unsecured debt ratings and are currently 110 basis points and 155 basis points over the applicable index for floating rate advances for the 5-Year Term Loan and the 7-Year Term Loan, respectively. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, British pound sterling and Japanese yen. Based on exchange rates in effect at December 31, 2017, the balance outstanding is approximately $1.4 billion, excluding deferred financing costs. We have used borrowings under the term loans for acquisitions, repayment of indebtedness, development, working capital and general corporate purposes. The covenants under the term loans are consistent with our global revolving credit facility and, as of December 31, 2017, we were in compliance with all of such covenants.

Senior Notes

Senior Notes and Annual Interest Rate

Date Issued

Maturity Date

Amount Issued (in millions, local currency)

Net Proceeds (in millions) ⁽¹⁾

Interest Payment Dates

Initial Issuer ⁽²⁾

Floating Rate Guaranteed Notes due 2019 ⁽⁵⁾

May 22, 2017

May 22, 2019

€

125.0

140.1

Quarterly, commencing August 22, 2017

Digital Euro Finco, LLC ⁽³⁾

5.875% Notes due 2020

Jan 28, 2010

Feb 1, 2020

500.0

487.1

Semi-annually, commencing August 1, 2010

Digital Realty Trust, L.P.

3.400% Notes due 2020

Oct 1, 2015

Oct 1, 2020

500.0

494.5

Semi-annually, commencing April 1, 2016

Digital Delta Holdings, LLC ⁽⁴⁾

5.250% Notes due 2021

Mar 8, 2011

Mar 15, 2021

400.0

395.5

Semi-annually, commencing September 15, 2011

Digital Realty Trust, L.P.

3.950% Notes due 2022

Jun 23, 2015

Jul 1, 2022

500.0

491.8

Semi-annually, commencing January 1, 2016

Digital Realty Trust, L.P.

3.625% Notes due 2022

Sep 24, 2012

Oct 1, 2022

300.0

293.1

Semi-annually, commencing April 1, 2016

Digital Realty Trust, L.P.

2.750% Notes due 2023

Aug 7, 2017

Feb 1, 2023

350.0

346.9

Semi-annually, commencing February 1, 2018

Digital Realty Trust, L.P.

4.750% Notes due 2023

Apr 1, 2014

Oct 13, 2023

300.0

490.9

Semi-annually, commencing October 13, 2014

Digital Stout Holding, LLC ⁽³⁾

2.625% Notes due 2024

Apr 15, 2016

Apr 15, 2024

€

600.0

670.3

Semi-annually, commencing October 15, 2016

Digital Euro Finco, LLC ⁽³⁾

2.750% Notes due 2024

Jul 21, 2017

Jul 19, 2024

250.0

321.3

Annually, commencing July 19, 2018

Digital Stout Holding, LLC ⁽³⁾

4.250% Notes due 2025

Jan 18, 2013

Jan 17, 2025

400.0

624.2

Semi-annually, commencing July 17, 2013

Digital Stout Holding, LLC ⁽³⁾

4.750% Notes due 2025

Oct 1, 2015

Oct 1, 2025

450.0

445.8

Semi-annually, commencing April 1, 2016

Digital Delta Holdings, LLC ⁽⁴⁾

3.700% Notes due 2027

Aug 7, 2017

Aug 15, 2027

1,000.0

991.0

Semi-annually, commencing February 15, 2018

Digital Realty Trust, L.P.

3.300% Notes due 2029

Jul 21, 2017

Jul 19, 2029

350.0

448.6

Annually, commencing July 19, 2018

Digital Stout Holding, LLC ⁽³⁾


(1)	Amounts are in U.S. dollars, based on the exchange rate on the date of issuance. Net proceeds are equal to principal amount less initial purchaser discount and other debt issuance costs.


(2)	Digital Realty Trust, Inc. guarantees the senior notes issued by Digital Realty Trust, L.P. Both Digital Realty Trust, L.P. and Digital Realty Trust, Inc. guarantee the senior notes issued by Digital Stout Holding, LLC and Digital Euro Finco, LLC.


(3)	A wholly owned subsidiary of Digital Realty Trust, L.P.

(4)

Initially a wholly owned subsidiary of Digital Realty Trust, Inc., pursuant to the terms of the indenture, following the consummation of the Telx Acquisition, on October 13, 2015, Digital Delta Holdings, LLC merged with and into Digital Realty Trust, L.P., with Digital Realty Trust, L.P. surviving the merger and assuming Digital Delta Holdings, LLC’s obligations under the 3.400% 2020 Notes, the 4.750% 2025 Notes, the related indenture and registration rights agreement by operation of law.


(5)	The 2019 Notes bear interest at a rate per annum, reset quarterly, equal to three-month EURIBOR plus 0.50% (currently 0.17%).

The indentures governing each of the senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50, and also requires us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At December 31, 2017, we were in compliance with each of these financial covenants.

The table below summarizes our debt maturities and principal payments as of December 31, 2017 (in thousands):



	Global Revolving Credit Facility ⁽¹⁾		Unsecured Term Loans		Senior Notes			Mortgage Loans		Total Debt
2018	$	—	$	—	$	—		$	593	$	593
2019	—		—		150,063			644		150,707
2020	558,191		—		1,000,000			1,133		1,559,324
2021	—		1,125,117		400,000			—		1,525,117
2022	—		—		800,000			—		800,000
Thereafter	—		300,000		4,276,990			104,000		4,680,990
Subtotal	$	558,191	$	1,425,117	$	6,627,053		$	106,370	$	8,716,731
Unamortized discount	—		—		(18,508		)	—		(18,508		)
Unamortized premium	—		—		—			241		241
Total	$	558,191	$	1,425,117	$	6,608,545		$	106,611	$	8,698,464


(1)	Subject to two six-month extension options exercisable by us. The bank group is obligated to grant the extension options provided we give proper notice, we make certain representations and warranties and no default exists under the global revolving credit facility.