Digital Realty calls 4.125% exchangeables, announces put option

By Susanna Moon

Chicago, July 14 - Digital Realty Trust, Inc. said holders may put the $48.3 million principal amount of outstanding 4.125% exchangeable senior debentures due 2026 issued by its operating partnership Digital Realty Trust, LP.

Holders may deliver their notes for redemption from July 14 through 5 p.m. ET on Aug. 12, and the redemption date will be Aug. 15. Holders will receive par.

In addition, Digital Realty plans to redeem any outstanding exchangeables at par plus accrued interest up to but excluding the redemption date of Aug. 18, according to a press release.

Holders may exchange their notes until 5 p.m. ET on Aug. 16 at a price of $30.9857 per share, which is equivalent to an exchange rate of 32.2730 common shares per $1,000 principal amount of notes.

Under the note terms, holders of record as of Aug. 1 who plan to exchange their notes rather than put them or have them redeemed must exchange their notes after 5 p.m. ET on Aug. 15 but before 5 p.m. ET on Aug. 16 in order to receive the regularly scheduled Aug. 15 interest payment.

Holders of record as of Aug. 1 will not be entitled to the regularly scheduled Aug. 15 interest payment if they surrender their notes for exchange before 5 p.m. ET on Aug. 15.

On July 6, Digital Realty Trust, LP announced the convertibility of the 4.125% notes for the quarter ending Sept. 30.

The notes are exchangeable into Digital Realty Trust, Inc. common stock during any calendar quarter if the company's closing share price is more than 130% of the exchange price for at least 20 out of 30 consecutive trading days ended on the last trading day of the quarter.

The exchange price was $30.99 per share as of June 30, and the company's shares closed at $63.69 on July 6 (NYSE: DLR).

Wells Fargo Bank, NA (213 614-2588) is the trustee, paying agent and exchange agent.

Digital Realty is a real estate investment trust based in San Francisco.

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