Digital Realty Trust closes $1.5 billion revolver, to mature in 2015

By Aleesia Forni

Columbus, Ohio, Nov. 7 - Digital Realty Trust Inc. entered into a new $1.5 billion global senior unsecured revolving credit facility, according to a company press release on Monday.

Pricing on the revolver is based on the company's debt rating and is initially 125 basis points over the applicable index for floating-rate advances.

The facility fee is initially set at 25 bps.

The facility matures in November 2015, has a one-year extension option and may be increased to $2.25 billion

This new revolver replaces and expands the San Francisco-based real estate investment trust's prior corporate revolver and Asia Pacific revolver.

Funds may be used for acquisitions, development, redevelopment, debt repayment, working capital and global expansion.

Under this facility, the company may borrow in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as euros, pounds, Swiss francs and Japanese yen.

"We are pleased with the very strong lender demand in our expanded credit facility, which was oversubscribed with commitments of over $2.1 billion received from 28 financial institutions, including 15 new lenders. We appreciate the support and confidence of our lenders as we continue to expand our business globally," chief financial officer and chief investment officer A. William Stein said in the release.

"This increased borrowing capacity further enhances our financial flexibility and provides us with immediate liquidity for potential acquisitions and development opportunities in our core markets," Stein said.

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