Debt of the Operating Partnership

9 Months Ended

Sep. 30, 2022

Debt of the Operating Partnership

Debt of the Operating Partnership

9. 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, the unsecured term loans and the unsecured senior notes. A summary of outstanding indebtedness is as follows (in thousands):

	September 30, 2022				December 31, 2021
	Weighted-				Weighted-
	average		Amount		average		Amount
	interest rate		Outstanding		interest rate		Outstanding
Global revolving credit facilities	2.76	%	$	2,273,172	0.96	%	$	415,116
Unsecured term loans	1.34	%		735,151	—	%		—
Unsecured senior notes	2.34	%		12,375,590	2.26	%		13,000,042
Secured and other debt	7.05	%		492,261	3.47	%		147,082
Total	2.33	%	$	15,876,174	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):

	September 30, 2022				December 31, 2021
	Amount				Amount
Denomination of Draw	Outstanding		% of Total		Outstanding		% of Total
U.S. dollar ($)	$	4,275,903	26.9	%	$	3,141,951	23.2	%
British pound sterling (£)		1,754,807	11.1	%		2,117,758	15.6	%
Euro (€)		8,390,512	52.8	%		7,532,057	55.5	%
Other		1,454,952	9.2	%		770,474	5.7	%
Total	$	15,876,174			$	13,562,240

The table below summarizes debt maturities and principal payments as of September 30, 2022 (in thousands):

	Global Revolving		Unsecured		Unsecured		Secured and
	Credit Facilities (1)		Term Loans		Senior Notes		Other Debt		Total Debt
2022	$	—	$	—	$	294,060	$	—	$	294,060
2023		—		—		101,304		9,335		110,639
2024		—		—		867,370		9,381		876,751
2025		—		367,576		1,083,930		215,264		1,666,770
2026		—		—		1,332,300		111,479		1,443,779
Thereafter		2,273,172		367,575		8,696,626		146,802		11,484,175
Subtotal	$	2,273,172	$	735,151	$	12,375,590	$	492,261	$	15,876,174
Unamortized net discounts		—		—		(33,072)		—		(33,072)
Unamortized deferred financing costs		(18,033)		(5,175)		(61,108)		(277)		(84,593)
Total	$	2,255,139	$	729,976	$	12,281,410	$	491,984	$	15,758,509

(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”).

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	September 30, 2022		December 31, 2021
Floating rate notes due 2022	€	300,000	$	349,800	Sep 23, 2022	$	—	$	341,100
0.125% notes due 2022	€	300,000		332,760	Oct 15, 2022		294,060		341,100
0.600% notes due 2023	CHF	100,000		108,310	Oct 02, 2023		101,304		—
2.625% notes due 2024	€	600,000		677,040	Apr 15, 2024		588,120		682,200
2.750% notes due 2024	£	250,000		324,925	Jul 19, 2024		279,250		338,300
4.250% notes due 2025	£	400,000		634,480	Jan 17, 2025		446,800		541,280
0.625% notes due 2025	€	650,000		720,980	Jul 15, 2025		637,130		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		1,053,715		1,222,275
0.200% notes due 2026	CHF	275,000		298,404	Dec 15, 2026		278,585		301,419
1.700% notes due 2027	CHF	150,000		162,465	Mar 30, 2027		151,956		—
3.700% notes due 2027	$	1,000,000		1,000,000	Aug 15, 2027		1,000,000		1,000,000
5.550% notes due 2028	$	550,000		550,000	Jan 15, 2028		550,000		—
1.125% notes due 2028	€	500,000		548,550	Apr 09, 2028		490,100		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		273,520		295,938
3.600% notes due 2029	$	900,000		900,000	Jul 01, 2029		900,000		900,000
3.300% notes due 2029	£	350,000		454,895	Jul 19, 2029		390,950		473,620
1.500% notes due 2030	€	750,000		831,900	Mar 15, 2030		735,150		852,750
3.750% notes due 2030	£	550,000		719,825	Oct 17, 2030		614,350		744,260
1.250% notes due 2031	€	500,000		560,950	Feb 01, 2031		490,100		568,500
0.625% notes due 2031	€	1,000,000		1,220,700	Jul 15, 2031		980,200		1,137,000
1.000% notes due 2032	€	750,000		874,500	Jan 15, 2032		735,150		852,750
1.375% notes due 2032	€	750,000		849,375	Jul 18, 2032		735,150		—
						$	12,375,590	$	13,000,042
Unamortized discounts, net of premiums							(33,072)		(33,612)
Deferred financing costs, net							(61,108)		(63,060)
Total unsecured senior notes, net of discount and deferred financing costs						$	12,281,410	$	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 September 30, 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 nine months ended September 30, 2022: $51.1 million primarily due to redemption of the 4.750% Notes due 2025 in February 2022.

● During the nine months ended September 30, 2021: $18.3 million primarily due to redemption of the 2.750% Notes due 2023 in February 2021.

Global Revolving Credit Facility Amendment

On April 5, 2022, the Operating Partnership entered into an amendment (the “Amendment”) to the Second Amended and Restated Global Senior Credit Agreement (the “Credit Agreement”) The Amendment provides for, among other things: (1) an increase in the size of the global revolving credit facility from $3.0 billion to $3.75 billion and (2) the transition from U.S. dollar London Interbank Offered Rate (LIBOR) to Term Secured Overnight Financing Rate (SOFR) for floating rate borrowings denominated in U.S. dollars for all purposes under the Credit Agreement.

Euro Term Loan Agreement

On August 11, 2022, Digital Dutch Finco B.V., a wholly owned subsidiary of the Operating Partnership, entered into a term loan agreement (the “Euro Term Loan Agreement”) which governs (i) a €375.0 million three-year senior unsecured term loan facility (the “2025 Term Facility”), the entire amount of which was funded on the closing date, and (ii) a €375.0 million five-year senior unsecured term loan facility (the “2025-27 Term Facility” and, together with the 2025 Term Facility, the “Euro Term Facilities”), comprised of €125.0 million of initial term loans, the entire amount of which was funded on the closing date, and €250.0 million of delayed draw term loan commitments that were not funded on the closing date, and were funded on September 9, 2022. The Euro Term Facilities provide for borrowings in Euros. The 2025 Term Facility matures on August 11, 2025. The 2025-27 Term Facility matures on August 11, 2025, subject to two maturity extension options of one year each. The interest rate for borrowings under the Euro Term Facilities is based on EURIBO, plus a margin based on the corporate credit rating of our long-term senior unsecured debt of between 0.80% and 1.60% per annum. As of the closing date, the applicable rate for borrowings is EURIBO plus 0.95% per annum. We are also required to pay certain fees to the administrative agent under the Euro Term Facilities. The Euro Term Facilities may be voluntarily prepaid in whole or in part at any time without premium or penalty. Amounts borrowed under the Euro Term Facilities and repaid or prepaid may not be reborrowed.

5.550% Notes due 2028

On September 27, 2022, Digital Realty Trust, L.P. completed an underwritten public offering of $550.0 million aggregate principal amount of its 5.550% Notes due 2028. Interest on the 5.550% Notes due 2028 is payable on January 15 and July 15 of each year, beginning on January 15, 2023, until the maturity date of January 15, 2028. Our obligations under the 5.550% Notes due 2028 are fully and unconditionally guaranteed by Digital Realty Trust, Inc. The terms of the 5.550% Notes due 2028 are governed by a base indenture, dated as of June 23, 2015, by and among Digital Realty Trust, L.P., as issuer, Digital Realty Trust, Inc., as guarantor, and Computershare Trust Company, N.A., as successor to Wells Fargo Bank, National Association, as trustee, as supplemented by a supplemental indenture, dated as of September 27, 2022, by and among Digital Realty Trust, L.P., Digital Realty Trust, Inc. and the trustee. Net proceeds from the offering of the 5.550% Notes due 2028 were approximately $544.5 million, after deducting the managers’ commissions and certain offering expenses.