Exhibit 99.1
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Digital Realty Announces Pricing of Euro-Denominated Bonds
SAN FRANCISCO, CA – January8, 2020 –Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today that Digital Dutch Finco B.V., a wholly owned indirect finance subsidiary of the company’s operating partnership, Digital Realty Trust, L.P., priced an offering of €1.7 billion of Euro-denominated notes with a weighted-average maturity of approximately seven years and a weighted-average coupon of approximately 1.0%.
The notes are comprised of three series, including €300.0 million aggregate principal amount of 0.125% Guaranteed Notes due 2022, €650.0 million aggregate principal amount of 0.625% Guaranteed Notes due 2025 and €750.0 million aggregate principal amount of 1.500% Guaranteed Notes due 2030.
The Euro Notes will be senior unsecured obligations of Digital Dutch Finco B.V. and will be fully and unconditionally guaranteed by the company and the operating partnership. Interest on the 2022 Notes will be payable annually in arrears at a rate of 0.125% per annum from and including January 17, 2020, and the 2022 Notes will mature on October 15, 2022. Interest on the 2025 Notes will be payable annually in arrears at a rate of 0.625% per annum from and including January 17, 2020, and the 2025 Notes will mature on July 15, 2025. Interest on the 2030 Notes will be payable annually in arrears at a rate of 1.500% per annum from and including January 17, 2020, and the 2030 Notes will mature on March 15, 2030. Closing of the offering is expected to occur on January 17, 2020, subject to the satisfaction of customary closing conditions.
The company intends to allocate an amount equal to the net proceeds from the offering of the 2025 Notes and the 2030 Notes to finance or refinance, in whole or in part, recently completed or future green building, energy and resource efficiency and renewable energy projects, including the development and redevelopment of such projects. Pending the allocation of an amount equal to the net proceeds from the 2025 Notes and the 2030 Notes to eligible green projects, all or a portion of an amount equal to the net proceeds from such notes may be used for the repayment, redemption and/or discharge of debt of InterXion Holding N.V. or its subsidiaries and the payment of certain transaction fees and expenses incurred in connection with the previously announced combination with InterXion. The offering is not conditioned upon the completion of the InterXion combination. However, if the InterXion combination is not consummated on or prior to January 27, 2021, or the InterXion purchase agreement is terminated prior to such date, the issuer will be required to redeem all of the 2025 Notes and 2030 Notes at a redemption price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest, if any, up to, but not including, the redemption date.
The company intends to use the net proceeds from the offering of the 2022 Notes and, pending the uses described in the previous paragraph, may use the net proceeds from the offering of the 2025 Notes and the 2030 Notes to temporarily repay borrowings outstanding under the operating partnership’s global credit facilities, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts and short-term, interest-bearing securities consistent with the company’s intention to qualify as a REIT for U.S. federal income tax purposes, and to provide for working capital and