September 24, 2018 / 5:13 PM / 2 years ago

BUZZ-Digital Realty: Falls on Brazilian data center buy, $1 bln stock offering

** Digital Realty drops 4 pct to two-month low as data center REIT looks to expand its Latin America footprint

** Co to buy Brazilian data center provider Ascenty from PE firm Great Hill Partners; transaction valued at ~$1.8 bln, expected to close before end of the year

** DLR enters into equity commitment letter with Brookfield Asset Management affiliate; Brookfield to fund half required initial equity investment estimated to be approx $613 mln in exchange for 49 pct total equity interests in JV entity to own Ascenty

** Digital offering 8.5 mln shares through forward sale agreements with affiliates of joint bookrunners BofA-ML and Citigroup

** Co to use net proceeds to partially fund Ascenty acquisition; settlement of forward sale agreements expected to occur no later than Sept 27, 2019

** Offering, which represents ~4 pct of co’s total shares outstanding, slated to price after markets close on Mon

** DLR recently trading around $116 and biggest pct loser on S&P 500 Real Estate index in today’s session. Stock hanging onto ~2 pct gain YTD vs index’s decline of ~1 pct

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