Digital Realty executes enlarged $740 million term loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 13 – Digital Realty Trust, Inc., its operating partnership Digital Realty Trust, LP and certain subsidiaries with Digital Euro Finco, LLC and Digital Dutch Finco BV executed an agreement for a $740 million senior term loan facility on Jan. 9, according to an 8-K filed with the Securities and Exchange Commission.

The term loan was announced in October at a planned size of $660 million, as previously reported.

The term loan facility matures on March 31, 2025, subject to one 12-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 through the initial maturity date at SOFR plus 80 bps 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.

Bank of America, NA is the administrative agent.

BofA Securities, Inc. and JPMorgan Chase Bank, NA are the joint bookrunners and are joined as lead arrangers by Capital One, NA, Deutsche Bank Securities Inc., Mizuho Bank, Ltd., Oversea Chinese Banking Corp. Ltd. – Los Angeles Agency, PNC Bank, NA, Raymond James Bank, Sumitomo Mitsui Banking Corp., Bank of China, Los Angeles Branch, Bank of Nova Scotia, TD Securities (USA) LLC, DBS Bank Ltd. and Citibank, NA.

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

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