CyrusOne adds $250 million term loan B, lifting total to $1.2 billion

By Wendy Van Sickle

Columbus, Ohio, March 21 – CyrusOne Inc.’s operating partnership, CyrusOne LP, amended and restated its credit agreement dated Oct. 9, 2014 on Thursday, providing for an additional $250 million term loan B and lifting total commitments to $1.2 billion, according to an 8-K filing with the Securities and Exchange Commission.

The new term loan B is in addition to an existing senior unsecured $300 million term loan A facility and an existing senior unsecured $650 million revolver.

The term loan B matures on Sept. 17, 2021 and has terms and conditions that are substantially similar to the existing term loan A and revolver.

The term loan B has initial interest of Libor plus 165 basis points. The applicable margin can range from 165 bps to 235 bps, depending on the borrower’s ratio of consolidated total indebtedness to gross asset value. If Cyrus achieves investment-grade ratings, the spread above Libor will drop to 105 bps to 195 bps, depending on ratings. Interest is the same for the term loan A.

The revolver’s current interest rate is Libor plus 170 bps, with a possible spread of 170 bps to 240 bps. If investment-grade ratings are achieved, that range will drop to a ratings-based spread of 95 bps to 240 bps.

The credit agreement also provides a $250 million accordion feature.

At closing, the partnership borrowed the full amount of the term loan B, which it used to repay outstanding revolving loans.

KeyBanc Capital Markets Inc., J.P. Morgan Securities LLC, Barclays, RBC Capital Markets and TD Securities (USA) LLC are the joint lead arrangers for the loan, KeyBank NA is the administrative agent, and J.P. Morgan Chase Bank, NA is the syndication agent.

CyrusOne is a Dallas-based provider of data center facilities. Cervalis is a privately held owner and operator of data centers.

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