Digital Realty, a provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, amended, extended and upsized its existing global revolving credit facility from $2.35 billion to $3 billion.
Pricing for the facility was tightened by five basis points at the BBB/Baa2 senior unsecured debt rating, while the maturity date was extended by three years and the total availability was expanded by $650 million. The new $3 billion revolving credit facility matures in January 2027, assuming the exercise of two six-month extension options. In addition, Digital Realty has the ability to upsize the facility by up to $1.5 billion.
The revolving credit facilities now feature a sustainability-linked pricing component, with pricing subject to adjustment based on annual performance targets.
Digital Realty also amended and extended its existing ¥33.3 billion ($290 million) Japanese yen-denominated revolving credit facility. The $290 million revolving credit facility also matures in January 2027, assuming the exercise of two six-month extension options. Pricing for the $290 million facility is 50 basis points over the applicable index for floating rate advances based on the company’s BBB/Baa2 senior unsecured debt rating. Digital Realty also has the ability to upsize the yen facility by up to an additional ¥60 billion ($525 million).
BofA Securities and Citibank are serving as co-sustainability structuring agents for the $3 billion revolving credit facility, while Sumitomo Mitsui Banking is serving as sustainability structuring agent for the yen revolving credit facility.
“We are proud to draw an even tighter connection between our corporate commitment to sustainability and our global financing strategy, and we are pleased by the strong support from the global lending community for the recast of our credit facilities,” Andrew P. Power, president and CFO of Digital Realty, said. “The refinancing was well oversubscribed, with commitments from more than 25 financial institutions around the world. With strong support from our lending group, we were able to upsize the facility by $650 million and extend the maturity to January 2027, including extension options. We believe the successful refinancing underscores the institutional lender community’s view of 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 platform.”
“We applaud Digital Realty for the leadership it has shown in using the sustainability-linked loan market to emphasize its commitment to ESG,” Alex Liftman, global environmental executive at Bank of America, said. “Bank of America is pleased to have played a role in this important transaction.”
Funds from the combined facilities may be drawn in Australian dollars, British pounds sterling, Canadian dollars, euros, Hong Kong dollars, Japanese yen, Singapore dollars, Indonesian rupiah, Swiss francs, Korean won and/or U.S. dollars.
“We would like to acknowledge the efforts of Citibank, BofA Securities and JPMorgan Chase Bank in their capacity as joint lead arrangers and joint book running managers, which led to the successful syndication of the global revolver,” Michael P. Brown, senior vice president of treasury at Digital Realty, said. “We would also like to extend our gratitude to the entire bank group for their overwhelming support. In addition, we would like to acknowledge Sumitomo Mitsui Banking Corporation, MUFG Bank, LTD and Mizuho Bank, LTD’s efforts in their capacity as joint lead arrangers and joint book running managers of the Japanese yen facility.”
