CyrusOne extends $2.5 billion of facilities, lowers pricing

By Sarah Lizee

Olympia, Wash., April 1 – CyrusOne Inc. operating partnership CyrusOne LP entered into an amendment to its senior unsecured credit agreement, extending the maturity dates and decreasing the interest rate margins applicable on the revolver and term loans, according to a press release.

The amended agreement consists of a $1.4 billion revolver, which includes a $750 million multicurrency borrowing sublimit, and term loan commitments totaling $1.1 billion.

The revolver was decreased by $300 million and matures in March 2024. It includes a 12-month extension option.

The term loan commitments consist of a $400 million term loan maturing in March 2023 and a $700 million term loan maturing in March 2025. The term loan maturing in March 2023 includes two 12-month extension options.

The credit agreement also contains an accordion that allows the company to obtain up to $1.5 billion in additional revolving or term loan commitments.

Interest on the revolver is Libor plus 100 basis points, down 25 bps from the previous rate. The facility fee is 20 bps.

Interest on the term loan due March 2023 is Libor plus 120 bps, down 15 bps from the previous rate, and interest on the term loan due March 2025 is also Libor plus 120 bps, down 45 bps from the previous rate.

“The pricing, terms and facility size reflect our status as an investment-grade issuer with ongoing access to the IG bond market, as needed,” Diane Morefield, chief financial officer, said in the release.

“We will generate significant interest and fee savings under the amended credit facility, and we have effectively extended our bank debt maturities out to five years.”

JPMorgan Chase Bank, NA, KeyBanc Capital Markets Inc., Morgan Stanley Bank, NA, RBC Capital Markets LLC and TD Securities (USA) LLC are joint lead arrangers. JPMorgan is the administrative agent, KeyBank NA, Morgan Stanley Bank, NA, RBC Capital Markets LLC and TD Securities (USA) LLC are syndication agents, and Citizens Bank, NA, Deutsche Bank Securities Inc., Fifth Third Bank, Goldman Sachs Bank USA, MUFG Bank, Ltd, PNC Bank, NA and Truist Bank are the co-documentation agents. Senior managing agents include BMO Harris Bank and Credit Agricole CIB. Barclays is a managing agent.

CyrusOne is a Dallas-based real estate investment trust specializing in data center properties.

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