SAN FRANCISCO, Oct. 25, 2018 /PRNewswire/ -- Digital Realty
(NYSE: DLR), a leading global provider of data center, colocation
and interconnection solutions, announced today that it has
completed the refinancing of its global credit facilities.
The combined facilities total $3.3
billion, consisting of a $2.35
billion global revolving credit facility and approximately
$916 million of multi-currency term
loans. The refinancing provides funds for acquisitions,
development, debt repayment, working capital and general corporate
purposes. In conjunction with the refinancing, pricing for
the global revolving credit facility was tightened by 10 basis
points at the company's BBB / Baa2 senior unsecured debt rating,
the maturity date was extended by three years and total
availability was expanded by $350
million. The company also completed a five-year, ¥33.3
billion (approximately $300 million)
Japanese yen-denominated revolving credit facility to fund capital
requirements for the company's joint venture with Mitsubishi
Corporation and for general corporate purposes.
The $2.35 billion global revolving
credit facility matures in January
2023 and has two six-month extension options. Pricing
for the facility is based on the company's BBB / Baa2 senior
unsecured debt rating and was lowered from 100 to 90 basis points
over the applicable index for floating rate advances. The
annual facility fee is 20 basis points.
The $916 million term loans
include a multi-currency unsecured term loan of approximately
$512 million that matures in
January 2023 with two six-month
extension options; a $300 million
unsecured term loan that matures in January
2023; and a $104 million
secured term loan that matures in March 2023. In addition, we
have the ability to increase the unsecured term loans and the
global revolving credit facility, in any combination, by up to
$1.25 billion. Pricing for the
$512 million multi-currency term loan
and the $104 million secured term
loan 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 duration of
the $300 million term loan was
reduced from seven years to five years, and pricing was lowered
from 155 basis points to 100 basis points over the applicable index
for floating rate advances.
The company also closed a five-year, ¥33.3 billion
(approximately $300 million)
revolving credit facility. The facility matures in
January 2024 and can be increased up
to an additional ¥60 billion (approximately $535 million). Pricing for the ¥33.3
billion facility is based on the company's BBB / Baa2 senior
unsecured debt rating at 50 basis points over the applicable index
for floating rate advances. The unused facility fee is 10
basis points.
"We were very pleased by the strong support we received from the
international lending community for the refinancing of our existing
facilities as well as our new Japanese Yen facility," said
Andrew P. Power, Digital Realty's
Chief Financial Officer. "The refinancing of our existing
credit facilities was oversubscribed with commitments totaling over
$6 billion from 28 financial
institutions from around the world. With this strong support
from our lending group, we were able to upsize the revolving credit
facility by $350 million and extend
the maturities of our global revolving credit facility and
multi-currency term loan by three years. We believe the
refinancing illustrates 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 global revolver and term loan facilities," added
Michael P. Brown, Digital Realty's
Vice President, Treasury. "We would also like to extend our
gratitude to the entire bank group for their overwhelming support.
In addition, we would like to acknowledge Sumitomo Mitsui
Banking Corporation, MUFG Bank, LTD, and Mizuho Bank, LTD's efforts in their capacity as
joint lead arrangers and joint book running managers of the
Japanese Yen facility."
About Digital Realty
Digital Realty supports the data
center, colocation and interconnection strategies of more than
2,300 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 cloud and information technology services,
communications and social networking to financial services,
manufacturing, energy, healthcare, 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
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: reduced demand for data centers or decreases in
information technology spending; decreased rental rates, increased
operating costs or increased vacancy rates; increased competition
or available supply of data center space; the suitability of our
data centers and data center infrastructure, delays or disruptions
in connectivity or availability of power, or failures or breaches
of our physical and information security infrastructure or
services; our dependence upon significant customers, bankruptcy or
insolvency of a major customer or a significant number of smaller
customers, or defaults on or non-renewal of leases by customers;
breaches of our obligations or restrictions under our contracts
with our customers; our inability to successfully develop and lease
new properties and development space, and delays or unexpected
costs in development of properties; the impact of current global
and local economic, credit and market conditions; our inability to
retain data center space that we lease or sublease from third
parties; difficulty acquiring or operating properties in foreign
jurisdictions; our failure to realize the intended benefits from,
or disruptions to our plans and operations or unknown or contingent
liabilities related to, our recent acquisitions; our failure to
successfully integrate and operate acquired or developed properties
or businesses; difficulties in identifying properties to acquire
and completing acquisitions; risks related to joint venture
investments, including as a result of our lack of control of such
investments; 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; our failure to obtain necessary
debt and equity financing, and our dependence on external sources
of capital; financial market fluctuations and changes in foreign
currency exchange rates; 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 and goodwill and other intangible asset
impairment charges; our inability to manage our growth effectively;
losses in excess of our insurance coverage; environmental
liabilities and risks related to natural disasters; our inability
to comply with rules and regulations applicable to our company; our
failure to maintain our status as a REIT for federal income tax
purposes; our operating partnership's failure to qualify as a
partnership for federal income tax purposes; restrictions on our
ability to engage in certain business activities; and changes in
local, state, federal and international laws and regulations,
including related to taxation, 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, 2017 and
Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018 and June
30, 2018. 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.
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SOURCE Digital Realty