Digital Realty prices €1 billion of 5.125% notes due 2036

Digital Realty said on Oct. 6 that Digital Euro Finco, LLC priced €1 billion of 5.125% guaranteed notes due 2036 at 99.289% of principal. The notes are expected to close on Oct. 9, subject to customary closing conditions.

For traders and newer investors watching corporate debt issuance, the key point is that the notes are senior unsecured obligations of Digital Euro Finco and are fully and unconditionally guaranteed by Digital Realty and its operating partnership, Digital Realty Trust, L.P. Interest will be paid annually in arrears at 5.125% a year from Oct. 9, 2026, and the notes mature on Oct. 9, 2036.

Digital Realty said it intends to use an amount equal to the net proceeds to finance or refinance, in part or in full, new and existing projects that fit its Green Bond Framework, including development and redevelopment work. Until that allocation happens, it said the money may be used to temporarily repay borrowings under the operating partnership’s global revolving credit facilities, acquire properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term securities, and cover working capital and other general corporate purposes, including repayment or retirement of other debt or equity securities.

The company also said the Euro Notes are being sold only outside the United States under Regulation S of the U.S. Securities Act of 1933. They have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States or to U.S. persons unless an exemption applies.