San Francisco-based data centre operator Digital Realty has completed a US$3bn refinancing package, increasing its commitments by US$450m following strong investor demand.
The refinancing consists of a replacement US$2bn global revolving credit…
San Francisco-based data centre operator Digital Realty has completed a US$3bn refinancing package, increasing its commitments by US$450m following strong investor demand.
The refinancing consists of a replacement US$2bn global revolving credit facility due November 2017, with a new pricing reduced from 125 to 110 basis points, and an April 2017 US$1bn multi-currency term loan with new terms which slimmed down the rate from 145 to 120 basis points.
Both facilities have two six-month extension options and can be increased: the US$2bn revolver by US$550m; and the US$1bn term loan by US$100m.
They were both oversubscribed with total commitments of US$4.6bn from 27 banks.
Commenting on the popularity of the offering, CFO William Stein said: “To satisfy this demand, we upsized our global revolving credit facility by US$200m and increased our term loan by US$250m … The improved pricing grid is equal to or better than any widely syndicated credit facility for a US large cap investment grade REIT (real investment trust), including those with a credit rating higher than [Digital Realty’s] BBB/Baa2 rating.”
Proceeds will go towards acquisitions, development, redevelopment, debt repayment, working capital and global expansion.
BofA Merrill Lynch, Citigroup and JP Morgan were joint lead arrangers and joint bookrunners on the transaction.
The company has operations in 32 markets across North America, Europe, Asia and Australia.
