DigitalBridge exchanges $60 million 5.75% exchangeable notes due 2025 for shares, cash

By Rebecca Melvin

Concord, N.H., March 4 – DigitalBridge Group, Inc. announced that it has entered into an exchange agreement with certain holders of its 5.75% exchangeable senior notes due 2025 to exchange about $60 million of the notes for the company’s class A common shares and a fixed cash payment, according to a news release.

The notes were issued by DigitalBridge Operating Co. LLC.

Under the early exchange agreements, the original exchange ratio of 434.7826 shares per $1,000 of notes has been adjusted to account for savings on future interest payments otherwise due the noteholders.

Using the $7.37 closing price of DigitalBridge shares on March 3, the exchange ratio would be 454.9266 shares per bond with an incremental 20 shares representing value for incremental interest due to the noteholder.

DigitalBridge has agreed to issue 25.6 million shares and make a fixed cash payment of $14.4 million, including accrued interest. The exchange is expected to close on March 8, subject to customary closing conditions.

Following this transaction, a total of $222 million of the 2025 notes representing about 75% of the original issue has been exchanged early.

The digital infrastructure real estate investment trust is based in Boca Raton, Fla.

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