Digital Realty Refinances and Upsizes Revolving Credit Facilities to $4.5 Billion
Digital Realty Refinances and Upsizes Revolving Credit Facilities to $4.5 Billion
AUSTIN, Texas, Sept. 30, 2024 - Digital Realty (NYSE: DLR), the leading global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today that it has amended, extended and upsized its existing $3.75 billion senior unsecured revolving credit facility to $4.5 billion. The refinancing and upsizing of the facility is expected to provide the company with increased financial flexibility and a longer maturity profile.
The new revolving credit facility, which was led by Bank of America Merrill Lynch, JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association, includes a $2.5 billion five-year tranche and a $2.0 billion seven-year tranche. The facility also includes an accordion feature that allows Digital Realty to increase the borrowing capacity by an additional $1.0 billion, subject to certain conditions.
Andrew P. Power, Chief Financial Officer of Digital Realty, commented, “We are pleased to have completed this refinancing and upsizing of our revolving credit facility. The increased capacity and longer maturity profile provide us with greater financial flexibility to continue investing in the growth of our business and pursuing strategic opportunities.”
Digital Realty’s CEO, A. William Stein, added, “This transaction is a testament to the strength of our balance sheet and our ability to access attractive capital markets financing. We remain committed to delivering long-term value for our shareholders and continuing to provide industry-leading data center solutions to our customers.”
The refinancing and upsizing of Digital Realty’s revolving credit facility comes at a time when the company is experiencing significant growth in its business. In recent years, Digital Realty has made several strategic acquisitions and investments, including the acquisition of Interxion Holding NV, a leading European data center provider, and the development of new data centers in key markets around the world.
The increased financial flexibility provided by the refinancing and upsizing of the facility is expected to enable Digital Realty to continue investing in its growth strategy, while also providing the company with greater certainty and predictability in its financing costs over a longer period of time.
Digital Realty’s ability to access attractive capital markets financing is a reflection of the company’s strong financial position and the confidence that investors have in its long-term prospects. The company has a track record of delivering consistent growth and has established itself as a leader in the data center industry, with a global portfolio of over 280 data centers across 45 markets.
In conclusion, Digital Realty’s refinancing and upsizing of its revolving credit facility is a significant milestone for the company, providing it with increased financial flexibility and a longer maturity profile. The transaction is a testament to the strength of Digital Realty’s balance sheet and its ability to access attractive capital markets financing, and positions the company well for continued growth and success in the data center industry.
