US-based data centre service operator CyrusOne has finalised a US$450m senior unsecured revolving credit facility and a US$150m senior unsecured term loan.
The new RCF, which is due in October 2018 and bears a 1.7% interest rate over Libor, replaces a…
US-based data centre service operator CyrusOne has finalised a US$450m senior unsecured revolving credit facility and a US$150m senior unsecured term loan.
The new RCF, which is due in October 2018 and bears a 1.7% interest rate over Libor, replaces a US$225m revolver which paid 325bp over Libor.
The term loan, which will mature in October 2019, carries a 1.65% interest rate over Libor. The company has decided to draw US$75m of the term loan at closing.
Commenting on the transaction, CFO Kimberly Sheehy said: “In moving to an unsecured structure, while significantly increasing the aggregate commitment, we have enhanced financial flexibility and the capacity to fund our growth at attractive interest rates.”
KeyBank Capital Markets, JP Morgan, Barclays, RBC Capital Markets and TD Securities served as joint lead arrangers.
CyrusOne, in which US telco Cincinnati Bell has a 43.7% stake, operates as a real estate investment trust (REIT), which receives special tax considerations and typically offer investors high yields as they have to distribute a minimum of 90% of their taxable profits as dividends.
It owns 25 data centres, 23 of which are in the US. The other two are in London and Singapore.
