Digital Realty Completes $3.55 Billion Global Revolving Credit Facility and Multi-Currency Term Loan Financing

Jan 21, 2016, 09:00 ET from Digital Realty Trust, Inc.

SAN FRANCISCO, Jan. 21, 2016 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, announced today that it has completed the refinancing of its global revolving credit facility and term loan.  In conjunction with the refinancing, pricing was tightened by 10 basis points, the maturity date was extended by more than two years and aggregate commitments were expanded by $550 million.  The combined facilities total $3.55 billion, consisting of a $2.0 billion line of credit and a $1.55 billion term loan.  The refinancing provides funds for acquisitions, development, redevelopment, debt repayment, working capital and general corporate purposes. 

The renewed $2.0 billion line of credit matures in January 2020, has two six-month extension options, and can be upsized by $500 million to approximately $2.5 billion.  Pricing for the facility is based on the company's BBB/Baa2 senior unsecured debt rating and was lowered from 110 to 100 basis points over the applicable index for floating rate advances.  The annual facility fee is 20 basis points.  

The $1.55 billion term loan includes a five-year, $1.25 billion multi-currency loan that matures in January 2021 and a seven-year, $300 million U.S. dollar loan that matures in January 2023.  Total commitments can be increased up to $1.8 billion.  Pricing for the five-year, $1.25 billion multi-currency loan is based on the company's BBB/Baa2 senior unsecured debt rating and was lowered from 120 to 110 basis points over the applicable index for floating rate advances.  Pricing for the $300 million U.S. dollar loan is likewise based on the company's BBB/Baa2 senior unsecured debt rating and is currently 155 basis points over the applicable index for floating rate advances.  

Concurrent with the closing of the term loan, the company entered into a series of interest rate swaps, such that the term loan balance is now 75% fixed with an all-in rate of 2.3%.  Pro forma for the refinancing and interest rate swaps, variable rate debt now represents less than 15% of total debt outstanding; the weighted-average maturity, including extension options, is now 6.2 years; and no more than $250 million, or less than 5% of total debt, comes due in any year prior to 2020. 

"We were very pleased by the strong support we received from the international lending community for the refinancing of these facilities, which were oversubscribed with commitments totaling over $5 billion from more than 25 financial institutions from around the world," said Andrew P. Power, Digital Realty's Chief Financial Officer.  "With this strong support from our lending group, we were able to upsize the term loan by $550 million and extend the maturity of our credit facilities by more than two years.  We believe these positive trends illustrate the institutional lender community's view on the strength of our balance sheet and underlying business, while providing us with greater financial flexibility as we continue to prudently fund the growth of our global portfolio." 

Funds from the combined facilities may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as euro, pound sterling and Japanese yen denominations.  

"We would like to acknowledge Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation, TD Securities (USA) LLC and U.S. Bank National Association's efforts in their capacity as joint lead arrangers and joint book running managers, which led to the successful syndication of the two facilities.  We would also like to extend our gratitude to the entire bank group for their overwhelming support," added Mr. Power. 

About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia.  Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products.  https://www.digitalrealty.com/ 

For Additional Information:
Andrew P. Power
Chief Financial Officer
Digital Realty Trust, Inc.
(415) 738-6500

Investor Relations
John J. Stewart / Maria S. Lukens
Digital Realty Trust, Inc.
(415) 738-6500
investorrelations@digitalrealty.com

Media Inquiries
John Christiansen / Lindsay Andrews
Sard Verbinnen & Co.
(415) 618-8750

Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to use of proceeds from the facilities, maturity dates, extension options and accordion options.  These risks and uncertainties include, among others, the following: the impact of current global economic, credit and market conditions; current local economic conditions in the geographies in which we operate; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates.  For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015.  The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

 

SOURCE Digital Realty Trust, Inc.



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