Digital Realty Trust, Inc., a leading global provider of data center solutions, announced today that it has completed the refinancing of its global revolving credit facility and term loan. In conjunction with the refinancing, pricing was tightened by 10 basis points, the maturity date was extended by more than two years and aggregate commitments were expanded by $550 million. The combined facilities total $3.55 billion, consisting of a $2.0 billion line of credit and a $1.55 billion term loan. The refinancing provides funds for acquisitions, development, redevelopment, debt repayment, working capital and general corporate purposes.
The renewed $2.0 billion line of credit matures in January 2020, has two six-month extension options, and can be upsized by $500 million to approximately $2.5 billion. Pricing for the facility is based on the company's BBB/Baa2 senior unsecured debt rating and was lowered from 110 to 100 basis points over the applicable index for floating rate advances. The annual facility fee is 20 basis points.
The $1.55 billion term loan includes a five-year, $1.25 billion multi-currency loan that matures in January 2021 and a seven-year, $300 million U.S. dollar loan that matures in January 2023. Total commitments can be increased up to $1.8 billion. Pricing for the five-year, $1.25 billion multi-currency loan is based on the company's BBB/Baa2 senior unsecured debt rating and was lowered from 120 to 110 basis points over the applicable index for floating rate advances. Pricing for the $300 million U.S. dollar loan is likewise based on the company's BBB/Baa2 senior unsecured debt rating and is currently 155 basis points over the applicable index for floating rate advances.
Concurrent with the closing of the term loan, the company entered into a series of interest rate swaps, such that the term loan balance is now 75% fixed with an all-in rate of 2.3%. Pro forma for the refinancing and interest rate swaps, variable rate debt now represents less than 15% of total debt outstanding; the weighted-average maturity, including extension options, is now 6.2 years; and no more than $250 million, or less than 5% of total debt, comes due in any year prior to 2020.
"We were very pleased by the strong support we received from the international lending community for the refinancing of these facilities, which were oversubscribed with commitments totaling over $5 billion from more than 25 financial institutions from around the world," said Andrew P. Power, Digital Realty's Chief Financial Officer. "With this strong support from our lending group, we were able to upsize the term loan by $550 million and extend the maturity of our credit facilities by more than two years. We believe these positive trends illustrate the institutional lender community's view on the strength of our balance sheet and underlying business, while providing us with greater financial flexibility as we continue to prudently fund the growth of our global portfolio."
Funds from the combined facilities may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as euro, pound sterling and Japanese yen denominations.
"We would like to acknowledge Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, The Bank of Nova Scotia, Sumitomo Mitsui Banking Corporation, TD Securities (USA) LLC and U.S. Bank National Association's efforts in their capacity as joint lead arrangers and joint book running managers, which led to the successful syndication of the two facilities. We would also like to extend our gratitude to the entire bank group for their overwhelming support," added Mr. Power.
Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia.