Digital Realty tenders for $600 million 5.875% notes issued by DuPont

By Susanna Moon

Chicago, Aug. 31 – Digital Realty’s indirect subsidiary Digital Realty Trust, Inc. is tendering for the $600 million outstanding principal amount of 5.875% senior notes due 2021 issued by DuPont Fabros Technology, LP.

Digital Realty also is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and certain events of default and to shorten the minimum notice required for a redemption to two business days, according to a company announcement.

The tender offer and consent solicitation will remain open until 11:59 p.m. ET on Sept. 27.

The total purchase price will be $1,032.50 per $1,000 principal amount of notes tendered by 5 p.m. ET on Sept. 13, the consent payment deadline.

The total amount includes a consent payment of $30 per $1,000 principal amount.

Holders who tender after the consent deadline will receive the total amount less the consent fee.

The company also will pay accrued interest up to but excluding the settlement date.

DuPont Fabros has a controlling interest in the issuer, and the tender offer and consent solicitation are being made in connection with a merger agreement between the companies and some of their subsidiaries, the release noted.

Holders who tender their notes will be deemed to consent to all of the proposed amendments, and holders may not deliver consents without tendering their notes.

Tendered notes may be withdrawn before the early deadline.

The issuer said it plans to call any notes that remain outstanding after the offer.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 924-2200) is the tender agent and information agent.

Digital Realty owns, acquires, develops and operates data centers and is based in San Francisco. DuPont Fabros is a Washington, D.C.-based real estate investment trust that focuses on wholesale data centers.

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