QTS Announces $270 Million Increase to Credit Facility
QTS (Quality Technology Services), a provider of data centers and managed services, announced that commitments from several financial institutions, some of which participate in the existing credit facility, have increased the capacity of the company’s credit facility by $270 million and extended the maturity date to September 28, 2014.
The existing credit facility, which was originally instituted in September 2010 and now totals $440 million, is comprised of a $125 million term loan facility and a $315 million revolving credit facility. The facility is secured by the QTS Atlanta Metro Data Center and QTS Suwanee (Atlanta) Data Center assets. With 990,000 square feet, the Atlanta Metro Data Center is one of the largest data centers in the world. The credit facility also provides a $100 million accordion feature that can increase the amount of the facility up to $540 million.
The credit facility was arranged by Key Bank, which also served as administrative agent. Twelve additional financial institutions have joined lead arranger KeyBanc Capital Markets as credit facility participants, including Citibank, Deutsche Bank Trust Company Americas, Regions Bank, Bank of America, Goldman Sachs Bank USA, Caterpillar Financial, Credit Suisse, Morgan Stanley Bank, UBS Loan Finance, Royal Bank of Canada and Stifel Bank & Trust.
“QTS appreciates the support and confidence that these financial institutions have demonstrated in the future of QTS,” said Bill Schafer, chief financial officer – QTS. “The increased credit capacity enhances QTS’ financial flexibility as the company continues to expand its data center facilities in Atlanta, Richmond, Jersey City and Santa Clara. The credit facility will also allow us to repay existing debt, fund development to meet customer demand in other potential markets, and focus on future opportunities.”