Digital Realty Stock Sale May Raise $117M

Digital Realty Trust, Inc. (DLR) plans to raise up to $117 million in a public stock offering, the company said today. Digital plans to sell 2.5 million shares of its common stock, which closed today at $40.59, and has granted the underwriters an option to purchase 375,000 shares. The shares will be issued under Digital Realty Trust's existing shelf registration filed with the Securities and Exchange Commission.

Digital Realty's secondary offering comes as it is about to get some company in the data center real estate investment trust (REIT) sector. DuPont Fabros Technology has announced plans to raise up to $736 million in an IPO, which is scheduled for next week.

Digital Realty said it will use the proceeds of the offering to repay borrowings under its credit facility. The company said it would tap the credit line as needed to acquire additional properties or fund development of turnkey data center space. Merrill Lynch & Co. and Credit Suisse Securities (USA) LLC will serve as joint book running managers for the offering.

Digital Realty Trust owns 66 technology properties spanning 11.9 million rentable square feet in 26 markets throughout North America and Europe.