Digital Realty gets €750 million three-, five-year term loans

By Marisa Wong

Los Angeles, Aug. 17 – Digital Dutch Finco BV as borrower and Digital Realty Trust, Inc., operating partnership Digital Realty Trust, LP and Digital Euro Finco, LLC as guarantors entered into on Aug. 11 a euro term loan agreement for three- and five-year term loans, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Digital Dutch is a wholly owned subsidiary of the operating partnership.

The loan agreement governs a €375 million three-year senior unsecured term loan, the entire amount of which was funded on the closing date; a €375 million five-year senior unsecured term loan, comprised of €125 million of initial term loans, the entire amount of which was funded on the closing date; and €250 million of delayed-draw term loan commitments that were not funded at closing but may be drawn in a single drawing or up to four separate drawings at any time on or prior to Sept. 10.

The facilities provide for borrowings in euros. The three-year term loan matures on Aug. 11, 2025. The five-year term loan has an initial maturity on Aug. 11, 2025 but includes two one-year extension options.

Borrowings will bear interest at Euribor plus a margin based on the corporate credit rating of the company’s long-term senior unsecured debt of between 80 basis points and 160 bps. As of the closing date, the applicable rate is 95 bps.

The loan agreement includes requirements to maintain financial coverage ratios, including with respect to unencumbered assets.

Citibank, NA is administrative agent, with Bank of America, NA and JPMorgan Chase Bank, NA as syndication agents.

BofA Securities, Inc., Citibank, JPMorgan, Deutsche Bank Securities Inc., PNC Bank, NA, Bank of Nova Scotia, Bank of China, Los Angeles Branch, Oversea-Chinese Banking Corp. Ltd. – Los Angeles Agency, Raymond James Bank, Sumitomo Mitsui Banking Corp., DBS Bank Ltd., TD Securities (USA) LLC and U.S. Bank NA are joint lead arrangers. BofA Securities, Citibank and JPMorgan are joint bookrunners.

Deutsche Bank Securities Inc., PNC, Scotiabank, Bank of China, OCBC, Raymond James, Sumitomo Mitsui, DBS, TD Securities and U.S. Bank are co-documentation agents.

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

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