Debt of the Operating Partnership

3 Months Ended

Mar. 31, 2022

Debt of the Operating Partnership

Debt of the Operating Partnership

8. Debt of the Operating Partnership

All debt is currently held by the OP or its consolidated subsidiaries, and the Parent is the guarantor or co-guarantor of the global revolving credit facilities and unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):

	March 31, 2022				December 31, 2021
	Weighted-				Weighted-
	average		Amount		average		Amount
	interest rate		Outstanding		interest rate		Outstanding
Global revolving credit facilities	1.18	%	$	959,713	0.96	%	$	415,116
Unsecured senior notes	2.11	%		13,388,665	2.26	%		13,000,042
Secured and other debt	3.70	%		160,593	3.47	%		147,082
Total	2.06	%	$	14,508,971	2.23	%	$	13,562,240

The weighted-average interest rates shown represent interest rates at the end of the periods for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rates on certain variable rate debt.

We primarily borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies (in thousands, U.S. dollars):

	March 31, 2022				December 31, 2021
	Amount				Amount
Denomination of Draw	Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)	$	3,340,903	23.0	%	$	3,141,951	23.2	%
British pound sterling (£)		2,056,097	14.2	%		2,117,758	15.6	%
Euro (€)		7,942,786	54.7	%		7,532,057	55.5	%
Other		1,169,185	8.1	%		770,474	5.7	%
Total	$	14,508,971			$	13,562,240

The table below summarizes our debt maturities and principal payments as of March 31, 2022 (in thousands):

	Global Revolving		Unsecured		Secured and
	Credit Facilities (1)		Senior Notes		Other Debt		Total Debt
2022	$	—	$	664,020	$	782	$	664,802
2023		—		108,390		3,081		111,471
2024		—		992,470		—		992,470
2025		—		1,244,875		—		1,244,875
2026		—		1,487,776		7,822		1,495,598
Thereafter		959,713		8,891,134		148,908		9,999,755
Subtotal	$	959,713	$	13,388,665	$	160,593	$	14,508,971
Unamortized net discounts		—		(39,268)		—		(39,268)
Unamortized deferred financing costs		(16,388)		(64,747)		(353)		(81,488)
Total	$	943,325	$	13,284,650	$	160,240	$	14,388,215

(1) Includes amounts outstanding for the Global Revolving Credit Facility and the Yen Revolving Credit Facility (together, referred to as the “Global Revolving Credit Facilities”), which are discussed separately in these footnotes.

Unsecured Senior Notes

The following table provides details of our unsecured senior notes (balances in thousands):

	Aggregate Principal Amount at Issuance					Balance as of
	Borrowing Currency		USD		Maturity Date		March 31, 2022		December 31, 2021
Floating rate notes due 2022	€	300,000	$	349,800	Sep 23, 2022	$	332,010	$	341,100
0.125% notes due 2022	€	300,000		332,760	Oct 15, 2022		332,010		341,100
0.600% notes due 2023	CHF	100,000		108,310	Oct 02, 2023		108,390		-
2.625% notes due 2024	€	600,000		677,040	Apr 15, 2024		664,020		682,200
2.750% notes due 2024	£	250,000		324,925	Jul 19, 2024		328,450		338,300
4.250% notes due 2025	£	400,000		634,480	Jan 17, 2025		525,520		541,280
0.625% notes due 2025	€	650,000		720,980	Jul 15, 2025		719,355		739,050
4.750% notes due 2025	$	450,000		450,000	Oct 01, 2025		-		450,000
2.500% notes due 2026	€	1,075,000		1,224,640	Jan 16, 2026		1,189,703		1,222,275
0.200% notes due 2026	CHF	275,000		298,404	Dec 15, 2026		298,073		301,419
1.700% notes due 2027	CHF	150,000		162,465	Mar 30, 2027		162,585		-
3.700% notes due 2027	$	1,000,000		1,000,000	Aug 15, 2027		1,000,000		1,000,000
1.125% notes due 2028	€	500,000		548,550	Apr 09, 2028		553,350		568,500
4.450% notes due 2028	$	650,000		650,000	Jul 15, 2028		650,000		650,000
0.550% notes due 2029	CHF	270,000		292,478	Apr 16, 2029		292,654		295,938
3.300% notes due 2029	£	350,000		454,895	Jul 19, 2029		459,830		473,620
3.600% notes due 2029	$	900,000		900,000	Jul 01, 2029		900,000		900,000
1.500% notes due 2030	€	750,000		831,900	Mar 15, 2030		830,025		852,750
3.750% notes due 2030	£	550,000		719,825	Oct 17, 2030		722,590		744,260
1.250% notes due 2031	€	500,000		560,950	Feb 01, 2031		553,350		568,500
0.625% notes due 2031	€	1,000,000		1,220,700	Jul 15, 2031		1,106,700		1,137,000
1.000% notes due 2032	€	750,000		874,500	Jan 15, 2032		830,025		852,750
1.375% notes due 2032	€	750,000		849,375	Jul 18, 2032		830,025		-
						$	13,388,665	$	13,000,042
Unamortized discounts, net of premiums							(39,268)		(33,612)
Deferred financing costs, net							(64,747)		(63,060)
Total unsecured senior notes, net of discount and deferred financing costs						$	13,284,650	$	12,903,370

Restrictive Covenants in Unsecured Senior Notes

The indentures governing our senior notes contain certain covenants, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40% and (3) an interest coverage ratio of greater than 1.50. The covenants also require us to maintain total unencumbered assets of not less than 150% of the aggregate principal amount of unsecured debt. At March 31, 2022, we were in compliance with each of these financial covenants.

Early Extinguishment of Unsecured Senior Notes

We recognized the following losses on early extinguishment of unsecured notes:

● During the three months ended March 31, 2022: $51.1 million primarily due to redemption of the 4.750% Notes due 2025 in February 2022.

● During the three months ended March 31, 2021: $18.3 million primarily due to redemption of the 2.750% Notes due 2023 in February 2021.

Issuance of Unsecured Senior Notes

Digital Intrepid Holding B.V., an indirect wholly owned holding and finance subsidiary of the Operating Partnership through which the Interxion business is held, issued and sold the following notes during the quarter ended March 31, 2022:

● January 18, 2022: Issued and sold €750.0 million aggregate principal amount of 1.375% Guaranteed Notes due 2032 (the “2032 Notes”). Net proceeds from the offering were approximately €737.5 million (approximately $835.3 million based on the exchange rate on January 18, 2022) after deducting managers’ discounts and estimated offering expenses.

● March 30, 2022: Issued and sold CHF 100 million aggregate principal amount of 0.600% Guaranteed Notes due 2023 (the “2023 Notes”) and CHF 150 million aggregate principal amount of 1.700% Guaranteed Notes due 2027 (the “2027 Notes” and, together with the “2023 Notes,” the “Swiss Franc Notes”). Net proceeds from the offering of the Swiss Franc Notes were approximately CHF 248.6 million (approximately $269.2 million based on the exchange rate on March 30, 2022) after deducting the managers’ commissions and certain offering expenses.

All of the notes listed above are senior unsecured obligations of Digital Intrepid Holding B.V. and are fully and unconditionally guaranteed by Digital Realty Trust, Inc. and the Operating Partnership.