WASHINGTON, DC–Data center REITs DigitalRealty, based in San Francisco, andDuPont Fabros in Washington, DC, have announcedthey are merging in an all-stock transaction worth $7.6billion.
Under the terms of the agreement, DuPont Fabros shareholderswill receive 0.545 Digital Realty shares for each DuPont Fabrosshare they own. The deal includes $1.6 billion of assumed debt andDigital Realty has secured a bridge loan facility from BofAMerrill Lynch and Citigroup to financethe transaction if necessary. This debt will be permanentlyrefinanced via a combination of investment grade corporate bondsand other transactions.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
