Digital Realty Finishes Refinancing of Global Revolving Credit Facility and Multi-Currency Term Loans
SAN FRANCISCO, CA — Digital Realty publicized that it finished the refinancing of its global credit facilities. The combined facilities total $3.3 billion USD, consisting of a $2.35 billion global revolving credit facility and approximately $916 million of multi-currency term loans. The refinancing delivers funds for acquisitions, development, debt repayment, working capital and general corporate purposes. In combination 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, Digital Realty has 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.
Andrew P. Power, Digital Realty’s Chief Financial Officer, said, “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. 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.
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.