Digital Realty Trust, Inc. (DLR, Financial), a leading global provider of data center, colocation, and interconnection solutions, has announced significant developments aimed at bolstering its financial flexibility and supporting future growth initiatives. On December 20, 2024, the company's Board of Directors approved an amendment to its charter, increasing the number of authorized shares of common stock from 392 million to 502 million. This amendment was filed with the Maryland State Department of Assessments and Taxation and became effective on December 23, 2024.
In addition to the charter amendment, Digital Realty Trust has entered into an ATM Equity Offering Sales Agreement with a consortium of financial institutions, including BofA Securities, Inc., BNP Paribas Securities Corp., and others. This agreement allows the company to offer and sell shares of its common stock with an aggregate offering price of up to $3 billion. The sales will be conducted through various agents, either as sales agents or principals, and may include forward sale agreements with designated forward purchasers.
The new ATM program replaces a previous at-the-market program under which Digital Realty Trust had generated net proceeds of approximately $923.2 million from the issuance of around 5 million common shares. The company plans to use the net proceeds from these sales to repay borrowings, acquire additional properties or businesses, fund development opportunities, and for general corporate purposes.
These strategic financial maneuvers are designed to enhance Digital Realty Trust's capital structure, providing the company with the necessary resources to capitalize on growth opportunities in the rapidly evolving data center industry. The company's proactive approach in managing its financial resources underscores its commitment to delivering value to shareholders while maintaining a robust platform for future expansion.
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