Digital Realty Increases Global Revolving Credit Facility
Digital Realty Trust, Inc. has announced that it has expanded its global revolving credit facility from $1.5 billion to $1.8 billion pursuant to the accordion feature under the facility.
The global revolving credit facility continues to operate pursuant to its existing terms and conditions and provides funds for acquisitions, development, redevelopment, debt repayment, working capital, and global expansion. Funds may be drawn in U.S, Canadian, Singapore, Australian, and Hong Kong dollars, as well as Euro, Pound Sterling, Swiss Franc, and Japanese yen denominations. It matures in November 2015, has a one-year extension option, and can be increased to up to a total of approximately $2.25 billion U.S. dollar equivalent. Pricing is based on the company's senior unsecured debt ratings and is currently 125 basis points over the applicable index for floating rate advances plus a 25 basis point annual facility fee. Covenants generally are consistent with other BBB rated REITs.
"We exercised $300 million USD equivalent of the global revolving credit facility's $750 million USD equivalent accordion feature to further enhance our financial flexibility and provide us with additional liquidity, primarily for our U.S. and European properties and capital program," said A. William Stein, chief financial officer and chief investment officer for Digital Realty. "This is consistent with our ongoing strategy of bolstering our financial resources at the most favorable pricing available in the market."