Back to top

Image: Bigstock

Digital Realty (DLR) Taps Debt Market With EUR 1B Notes Offering

Read MoreHide Full Article

Digital Realty Trust (DLR - Free Report) has priced an offering of €1-billion aggregate principal amount of 0.625% guaranteed notes through Digital Intrepid Holding B.V., an indirect wholly-owned holding and finance subsidiary of the company's operating partnership, Digital Realty Trust, L.P.

The notes are scheduled to mature on Jul 15, 2031, and have been priced at a discount at 99.515% of the principal amount of the notes. The interest of 0.625% per annum will be paid on the notes annually in arrears starting Jan 12, 2021.

While the debt securities will be senior unsecured obligations of Digital Intrepid Holding B.V. it will be fully and unconditionally guaranteed by the company and the operating partnership.  

The company intends to allocate the net proceeds from the offering to fund or refinance recently completed or prospective green building, energy and resource efficiency, and renewable energy projects as well as the development and redevelopment of such projects.

Following the allocation referenced above, capital will be used to repay outstanding amounts under the company’s global revolving credit facilities, fun business and property acquisitions as well as development projects.

Markedly, with growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure; data-center REITs are witnessing a boom. Furthermore, the growth rates for artificial intelligence, autonomous vehicle and virtual/augmented reality markets are estimated to remain robust over the next five to six years.

Apart from these, data centers are poised to benefit from the heightening reliance on technology in the wake of the coronavirus pandemic. As such, data-center landlords, including Digital Realty, Iron Mountain Incorporated (IRM - Free Report) , Equinix, Inc. (EQIX - Free Report) and CoreSite Realty Corporation (COR - Free Report) , will likely keep witnessing significant demand.

Hence, Digital Realty’s aim to fortify its portfolio on the back of acquisitions and developments will help it capitalize on such trends.

Shares of this Zacks Rank #3 (Hold) company have appreciated 15% as against the industry’s decline of 5.7% over the past year.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

 

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in