QTS Realty Trust, a provider of hybrid colocation and mega scale data center solutions, entered into a new six-year $250 million term loan. QTS engaged KeyBank to serve as administrative agent and KeyBanc Capital Markets, BMO Capital Markets and PNC Capital Markets to serve as joint lead arrangers. TD Securities and Truist Bank will serve as co-documentation agents.

When combined with QTS’ current $1.7 billion unsecured credit facility, the term loan increases QTS’ aggregate unsecured credit facility capacity to $1.95 billion. Interest rates on the new term loan can vary based on leverage levels consistent with QTS’ existing term loans. The current interest rate on the new term loan LIBOR plus 1.2% and includes a LIBOR floor of 25 basis points.

The new term loan also provides for a $250 million accordion feature to increase it up to $500 million, subject to obtaining additional loan commitments. In addition, covenants are consistent with the company’s existing unsecured credit facility.

“We are pleased with the continued support from our lending partners in our credit facilities which provides QTS with substantial liquidity to support the continued growth across our platform,” Jeff Berson, CFO of QTS, said. “The additional Term Loan D further strengthens QTS’ balance sheet, while increasing liquidity and extending debt maturities at attractive pricing, reflecting QTS’ strong overall credit profile.”