By Cristal Cody
Tupelo, Miss., Aug. 2 – Digital Realty Trust LP sold $1.35 billion of guaranteed fixed-rate bonds (Baa2/BBB/BBB) in two parts on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company priced $350 million of 2.75% notes due Feb. 1, 2023 at 99.93 to yield 2.764%. The notes priced with a spread of Treasuries plus 95 basis points, tighter than talk in the Treasuries plus 105 bps area.
Digital Realty sold $1 billion of 3.7% 10-year notes at 99.924 to yield 3.709% and with a Treasuries plus 145 bps spread. The notes priced on the tightest side of guidance in the Treasuries plus 150 bps area.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
The notes will be guaranteed by Digital Realty Trust, Inc.
Proceeds will be used for the repayment, redemption and/or discharge of DuPont Fabros Technology Inc. debt, as well as certain fees and expenses from the merger with DuPont.
Digital Realty also priced $200 million of 5.25% cumulative redeemable preferred stock on Wednesday.
The San Francisco-based company owns, acquires, develops and operates data centers.
DuPont Fabros is a Washington, D.C.-based real estate investment trust that focuses on wholesale data centers.
| Issuer: | Digital Realty Trust LP
|
| Guarantor: | Digital Realty Trust, Inc.
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| Amount: | $1.35 billion
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| Description: | Guaranteed bonds
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, BBVA Securities Inc. and Raymond James & Associates
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 7
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| Ratings: | Moody’s: Baa2
|
| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| 5.5-year notes
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| Amount: | $350 million
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| Maturity: | Feb. 1, 2023
|
| Coupon: | 2.75%
|
| Price: | 99.93
|
| Yield: | 2.764%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; on or after Jan. 1, 2023 at par
|
|
|
| 10-year notes
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| Amount: | $1 billion
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| Maturity: | Aug. 15, 2027
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| Coupon: | 3.7%
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| Price: | 99.924
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| Yield: | 3.709%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 150 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps; on or after May 15, 2027 at par
|
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