SAN FRANCISCO-Digital Realty Trust has priced its underwritten public offering of 12 million shares of Series D Cumulative Convertible Preferred Stock at $24.25 per share that including over-allotment shares will generate net proceeds of more than $333 million. The shares will be convertible for shares of Digital Realty Trust common stock and will pay dividends quarterly at a rate of 5.5% per year.

The preferred shares will be convertible, at the holder’s option, at an initial conversion rate of 0.5955 common shares per $25.00 liquidation preference per preferred share (or an initial conversion price of $41.98 per common share), subject to adjustment upon the occurrence of certain events. The initial conversion price represents a 17.5% conversion premium over the closing sale price of the company’s common shares on Jan. 31, 2008 on the New York Stock Exchange, which was $35.73 per share.

Assuming underwriters Citi and Credit Suisse Securities (USA) LLC need the additional 1.8 million shares that will be offered up to cover over-allotments, the estimated net proceeds will be $333.6 million. The proceeds will be used to repay borrowings under its credit facility. It will then use the freed-up credit to for upcoming acquisitions, developments and redevelopment. The company says it is “actively pursuing multiple opportunities for potential acquisitions, with due diligence and negotiations at different stages of advancement.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.