Digital Realty Trust Prices New Preferred-TICKER Update

UPDATE–The OTC Grey Market ticker for tomorrow for this new issue will be – DLRPO

REIT Digital Realty Trust (NYSE:DLR) has priced their new preferred offering with a coupon of 5.85%.

The offering will be composed of 8 million shares with another 1.2 million available for over allotment.

The permanent ticker symbol will be DLR-K when it begins to trade on the big board.

In the meantime the issue will likely trade on the OTC Grey market tomorrow, although as of this moment the temporary ticker has not been posted.

The issue is rated Baa3 by Moodys and BB+ by Fitch and Moodys so it is investment grade per Moodys and 1 notch below investment grade according to the others.

The terms are the normal REIT terms being cumulative, non qualified and having a redemption period starting in March, 2024.

The pricing term sheet can be seen here.

3 thoughts on “Digital Realty Trust Prices New Preferred-TICKER Update”

  1. Disappointing.

    I have spent a 43 year career working and managing large scale data centers. I am quite familiar with DLR including some of their facilities in NY, NJ, Texas, Illinois, and Missouri. Almost entered into a 10 year contract with them at one point. Ultimately after I retired the company choose QTS. The decision was more based on the particular data center space in the area. Clearly DLR was the most impressive organization in terms of scale and financials.

    I will share with everybody the question in my mind? Has cloud computing changed the marketplace and growth for Data Center space? The answer is YES.

    But given the long term contracts and the complexity in moving data centers, this should be a safe stable company to invest in. Their existing contracts and income should be rather sticky.

    Will I buy this issue? No, 5.85% non-qualified is not enough

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