Digital Realty gets upsized $3 billion sustainability-linked revolver

By Marisa Wong

Los Angeles, Nov. 22 – Digital Realty amended, extended and upsized its existing global revolving credit facility to $3 billion from $2.35 billion, according to a Monday press release.

Pricing was tightened by 5 basis points at the BBB/Baa2 senior unsecured debt rating, the maturity date was extended by three years, and total availability was expanded by $650 million.

The new $3 billion revolver matures in January 2027, assuming the exercise of two six-month extension options.

In addition, Digital Realty has the ability to upsize the facility by up to $1.5 billion.

The credit facility now features a sustainability-linked pricing component, with pricing subject to adjustment based on annual performance targets.

Digital Realty also announced that it amended and extended its existing ¥33.3 billion (roughly $290 million) revolver.

The Japanese yen-denominated revolver also matures in January 2027, assuming the exercise of two six-month extension options.

Pricing is 50 bps over the applicable index for floating-rate advances, based on the company’s BBB/Baa2 rating.

The company also has the ability to upsize the yen facility by up to an additional ¥60 billion (or about $525 million).

Funds from the combined facilities may be drawn in Australian dollars, British pounds sterling, Canadian dollars, euros, Hong Kong dollars, Japanese yen, Singapore dollars, Indonesian rupiah, Swiss francs and Korean won as well as U.S. dollars.

“The refinancing was well oversubscribed, with commitments from more than 25 financial institutions around the world,” president and chief financial officer Andrew P. Power said in the release.

“We would like to acknowledge the efforts of Citibank, NA, BofA Securities, Inc. and JPMorgan Chase Bank, NA in their capacity as joint lead arrangers and joint book running managers, which led to the successful syndication of the global revolver,” added Michael P. Brown, senior vice president, treasury.

“In addition, we would like to acknowledge Sumitomo Mitsui Banking Corp., MUFG Bank, Ltd., and Mizuho Bank, Ltd.’s efforts in their capacity as joint lead arrangers and joint book running managers of the Japanese yen facility.”

BofA and Citibank were co-sustainability structuring agents for the global revolver, while Sumitomo was sustainability structuring agent for the yen revolver.

Digital Realty is an Austin, Tex.-based provider of cloud- and carrier-neutral data center, colocation and interconnection services.

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