QTS Realty raises unsecured facility to $900 million, lowers interest

By Wendy Van Sickle

Columbus, Ohio, Oct. 27 – QTS Realty Trust increased its unsecured credit facility to $900 million from $650 million and reduced its interest rate, according to a Tuesday press release.

The credit facility is comprised of two $150 million term loans, one maturing in about five years and the other in five-and-a-half years, and a $600 million revolving credit facility, which matures in four years and has a one-year extension option.

The term loans’ current interest rate was reduced to Libor plus 150 basis points from Libor plus 165 bps and the revolver’s interest rate to Libor plus 155 bps from Libor plus 170 bps. The interest will vary depending on the company’s interest ratio.

KeyBanc Capital Markets, Inc., Bank of America Merrill Lynch and Regions Capital Markets acted as joint lead arrangers and KeyBank NA as administrative agent.

An accordion feature gives QTS the ability to increase the facility by up to $200 million.

Term loan proceeds will be used to pay off QTS’ Richmond secured facility and to partially pay down the current unsecured revolving credit facility.

Bill Schafer, chief financial officer of QTS, said in the release that the changes to the credit facility “enhance the company’s financial flexibility and liquidity as we continue to expand our facilities in Atlanta, Dallas, New Jersey, Richmond, Santa Clara, Sacramento and development of our Chicago facility acquired last year.”

QTS is an Overland Park, Kan. providers of data center facilities and cloud services.

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