| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Digital Realty Trust, Inc. > News item |
Digital Realty gets upsized $3 billion global revolver, term loan due 2017; pricing improved
By Susanna Moon
Chicago, Aug. 19 - Digital Realty Trust, Inc. said it refinanced its $2 billion global revolving credit facility due November 2017 and $1 billion term loan due April 2017, lifting commitments by $450 million.
All-in pricing was reduced by 20 basis points for the revolver and by 25 bps for the multi-currency term loan, according to a company press release.
Proceeds will be used for acquisitions, development, redevelopment, debt repayment, working capital and global expansion.
Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead arrangers and bookrunning managers.
The revolver was upsized by $200 million and now has two six-month extension options. The total size may be increased up to a total of about $2.55 billion.
Pricing on revolving loans was lowered to 110 bps from 125 bps based on the company's debt ratings. The facility fee was cut to 20 bps from 25 bps.
Meanwhile, the term loan was upsized by $250 million, and total commitments may be increased up to $1.1 billion. The maturity remains unchanged at April 2017, with two new six-month extension options.
Pricing on the term loan was reduced to 120 bps from 145 bps.
The refinancing was oversubscribed with commitments totaling $4.6 billion from 27 financial banks, the release noted.
Funds from the combined facilities may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as euro, pound sterling, Swiss franc, Mexican peso and Japanese yen denominations.
In addition, the company improved covenants terms and definitions, removing the tangible net worth covenant and reducing the cap rate to 8% from 8.25% on data center assets.
Digital Realty is a real estate investment trust based in San Francisco with a focus on technology-related real estate.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.