Digital Realty Upsizes and Extends Credit Facilities to $4.5 Billion
Digital Realty Upsizes and Extends Revolving Credit Facilities
Digital Realty (NYSE: DLR) has made a significant move in the financial realm by refinancing and upscaling its existing revolving credit facilities, taking the total amount from $3.75 billion to a stunning $4.5 billion. This important development underscores Digital Realty's commitment to enhancing its financial flexibility while upping its investments in their expansive global data center portfolio.
A Key Extension of Maturity Dates
The company extended the maturity date of its global revolving credit facility by three years, prolonging its maturity to January 2029. Along with this extension, the total accessibility of these loans has been increased by $450 million. It is important to note that this facility not only offers increased funds but also provides two six-month extension options that can activate upon fulfilling certain criteria. This ensures that Digital Realty has ample time to draw on these resources when necessary.
Increased Capacity for Further Growth
In an additional strategic move, Digital Realty is now in a position to increase their global revolving credit facility by up to $1.8 billion. This increase includes the capacity for incremental term loans, presenting a robust opportunity for Digital Realty to further expand its operations. The company has shown its adaptability and readiness to grow by securing the funds to advance its business objectives globally.
Amendments to the Japanese Yen Facility
The refinements don't stop with the U.S. dollar facility. Digital Realty also increased its Japanese yen-denominated senior unsecured revolving credit facility, raising it from ¥33.285 billion to ¥42.511 billion, which translates to approximately $297 million. Just like the dollar loan, the yen facility has also been extended by three years and now matures in January 2029, ensuring that there is enough time for the company to utilize these funds effectively.
Sustainability-Linked Pricing Component
True to its commitment to environmental, social, and governance (ESG) principles, the revolving credit facilities incorporate a sustainability-linked pricing component. This innovative feature allows adjustments on pricing based on Digital Realty's annual performance, reflecting their leadership role in the industry and their steadfast dedication to sustainability.
Strong Support from Financial Institutions
Digital Realty's Chief Financial Officer, Matt Mercier, expressed gratitude for the tremendous support from the global lending community during the refinancing process. Describing the refinancing as well oversubscribed, he noted the overwhelming commitment from various prestigious financial institutions. This backing not only illustrates the lenders’ confidence in Digital Realty's financial standing but also highlights their ongoing support for the company's global data center platform.
Usage of Funds From Credit Facilities
The funds acquired from the new facilities can be drawn in multiple international currencies, including U.S., Canadian, Singapore, Australian, and Hong Kong dollars, as well as euros, pounds, and various Asian currencies. This flexibility allows Digital Realty to strategically manage resources and capitalize on growth opportunities as they arise across its global operations.
Acknowledgment of Key Contributors
In the spirit of transparency and collaboration, Michael P. Brown, the Senior Vice President for Treasury at Digital Realty, recognized the critical role played by BofA Securities, Citibank, and JPMorgan Chase Bank in successfully syndicating the global revolving facility. Their contributions as joint lead arrangers and managers were paramount in bringing this significant refinancing to fruition. This acknowledgment extends to all participating banks whose support has solidified the financial strategies set forth by Digital Realty.
About Digital Realty
Digital Realty is a global leader in data center solutions, seamlessly connecting companies and their data through state-of-the-art colocation and interconnection services. Their platform, known as PlatformDIGITAL®, offers customers a proven methodology for managing Data Gravity challenges and fosters innovation. With over 300 facilities in more than 50 metropolitan areas across 25+ nations on six continents, Digital Realty provides unparalleled access to interconnected communities globally. To discover more about Digital Realty, visit their official website or connect with them on LinkedIn and X.
Frequently Asked Questions
What is the total amount of the new revolving credit facility?
Digital Realty has upsized its revolving credit facility to a total of $4.5 billion.
When does the credit facility mature?
The maturity date for the new credit facility has been extended to January 2029.
What additional capacity has Digital Realty secured?
Digital Realty can increase the global revolving credit facility by up to $1.8 billion, including term loan capacity.
What is the pricing structure of the credit facilities?
There is a sustainability-linked pricing component, allowing for adjustments based on annual performance metrics.
Who were the key financial institutions involved in the refinancing?
Key contributors included BofA Securities, Citibank, and JPMorgan Chase Bank, among others, acting as lead arrangers and managers.
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