CyrusOne increases credit facility to $3 billion, extends maturity

By Sarah Lizee

Olympia, Wash., March 29 – CyrusOne Inc. operating partnership CyrusOne LP entered into a new senior unsecured credit agreement, increasing the size of its credit facility by $1 billion to a total of $3 billion, according to a press release.

The agreement also extends maturity dates, reduces the interest rate margins applicable on the revolving credit facility and five-year term loan, and enhances flexibility in support of the company’s international expansion plans, including the ability to borrow in non-U.S. dollar currencies.

The agreement consists of a $1.7 billion revolving credit facility, which includes a $750 million multicurrency borrowing sublimit, and term loan commitments totaling $1.3 billion.

The term loan includes a $1 billion five-year term loan, with a delayed-draw feature allowing the company to draw $300 million in up to three tranches over a six-month period in multiple currencies, and a new $300 million seven-year term loan.

Interest on the revolver and five-year term loan was decreased by 10 basis points to Libor plus 145 bps and Libor plus 140 bps, respectively, while interest on seven-year term loan is Libor plus 170 bps. Interest is based on the company’s current leverage level.

The revolver matures in March 2022 and includes a one-year extension option. The five-year term loan matures in March 2023 and the seven-year term loan matures in March 2025.

The credit agreement also contains an accordion that allows the company to obtain up to $1 billion in additional revolving or term loan commitments.

JPMorgan Chase Bank, NA acted as administrative agent, KeyBank NA acted as syndication agent and JPMorgan, KeyBanc Capital Markets Inc., Barclays Bank plc, RBC Capital Markets, LLC and TD Securities (USA) LLC acted as joint lead arrangers.

Co-documentation agents include Bank of America, NA, Citizens Bank, NA, Fifth Third Bank, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., PNC Bank, NA, Raymond James Bank, NA, SunTrust Bank.

Bank of Tokyo-Mitsubishi UFJ, Ltd., BMO Harris Bank NA, Credit Agricole CIB and ING Capital LLC are new lending institutions.

There are 23 financial institutions in the syndicate.

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

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