Digital Realty gets $660 million term loan via escrow agreement

By Mary-Katherine Stinson

Lexington, Ky., Nov. 1 – Digital Realty Trust, Inc., its operating partnership Digital Realty Trust, LP and certain subsidiaries with Digital Euro Finco, LLC and Digital Dutch Finco BV as guarantors entered into on Oct. 25 an escrow agreement providing a $660 million senior term loan facility, according to an 8-K filed with the Securities and Exchange Commission.

The term loan will be released from escrow and become effective upon conditions that may only be satisfied between Jan. 1 and Jan. 23 including the delivery of certain legal opinions and certificates by the operating partnership, the absence of default under the term loan agreement and the payment of fees.

The term loan facility matures on March 31, 2025, subject to one twelve-month extension at the operating partnership’s option; provided, that the operating partnership must pay an 18.75 basis points extension fee based on the then-outstanding principal amount of the term loans.

Borrowings will bear interest from the anticipated closing date through the initial maturity date at SOFR plus 80 basis points to 160 bps plus a credit spread adjustment of 10 bps, 15 bps or 25 bps. Interest will be based on the corporate credit rating of the company’s long-term senior debt.

The initial margin is anticipated to be 95 bps.

Following an extension of the maturity date, interest will be at SOFR plus 95 bps to 175 bps plus the same CSA.

There are certain required fees payable to the administrative agent under the escrow agreement and the term loan facility.

There are no prepayment penalties.

Arnold & Porter Kaye Scholer LLP is the escrow agent.

Bank of America, NA is the administrative agent.

Digital Realty owns, acquires, develops and operates data centers and is based in San Francisco.

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