QTS Increases Unsecured Credit Facility by $250 Million to $900 Million, Extends Maturity Date, Reduces Interest Rate and Eliminates $120 Million Secured Credit Facilit
OVERLAND PARK, Kan., Oct. 27, 2015 /PRNewswire/ -- QTS Realty Trust (NYSE: QTS), one of the nation's largest and fastest-growing providers of data center facilities and cloud services, and a leader in security and compliance, today announced its unsecured credit facility has been increased to $900 million, up from $650 million. The unsecured credit facility is comprised of two $150 million term loans, one with an approximate 5 year maturity and the other with a 5.5 year maturity and a four year $600 million revolving credit facility. The $600 million revolving credit facility also has a one-year extension option.
The current interest rate on the credit facility was also reduced to LIBOR plus 1.50% on the term loan portions and to LIBOR plus 1.55% on the $600 million revolving credit facility portion. This compares to the previous rate of LIBOR plus 1.65% on the term loan and LIBOR plus 1.70% on the revolving credit loan. In the future, the interest rate spread under the credit facility will vary depending upon the company's leverage ratio. The credit facility also has an accordion feature that gives QTS the ability to increase the credit facility by up to $200 million upon obtaining additional commitments. Net proceeds from the term loan will be used to pay off the Richmond secured facility and to partially pay down the current unsecured revolving credit facility.
QTS engaged KeyBank National Association to serve as administrative agent and KeyBanc Capital Markets, Inc. (NYSE: KEY), Merrill Lynch, Pierce, Fenner & Smith Incorporated (NYSE: BAC) and Regions Capital Markets (NYSE: RF) to serve as joint lead arrangers for the amendment and extension. Seventeen financial institutions make up the syndicate for the credit facility.
"QTS appreciates the continued confidence and trust of our lending partners," said Bill Schafer, Chief Financial Officer - QTS. "The increased credit facility capacity, extended term and lower interest rates enhance the company's financial flexibility and liquidity as we continue to expand our facilities in Atlanta, Dallas, New Jersey, Richmond, Santa Clara, Sacramento and development of our Chicago facility acquired last year."
QTS specializes in acquiring, developing and managing scalable mega data centers in strategic markets. The company's nationwide distribution maximizes the use of space, power and QTS expertise to support customer growth and overall market demand.
About QTS
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of secure, compliant data center solutions and fully managed services, and the owner of Carpathia Hosting, a leading provider of hybrid cloud services and managed hosting. QTS' integrated technology service platform of custom data center (C1), colocation (C2) and cloud and managed services (C3) provides flexible, scalable, secure IT solutions for web and IT applications. QTS' Critical Facilities Management (CFM) provides increased efficiency and greater performance for third-party data center owners and operators. QTS owns, operates or manages 25 data centers and supports more than 1,000 customers in North America, Europe and Asia Pacific. For more information, please visit www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow us on Twitter @DataCenters_QTS.
Investor Relations Contact:
Jeff Berson
[email protected]
Media Contact:
Marlena Reed
communications 21 for QTS
404.814.1330
[email protected]
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SOURCE QTS Realty Trust, Inc.
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