Summary
Digital Realty Trust, Inc. (DLR) has announced its intention to recast its significant debt facilities, including its global unsecured revolving facility, 5-year term loan facility, and 7-year term loan facility. The company anticipates an increase in borrowing capacity for its revolving facility, extended maturity dates for the revolving facility and the 5-year term loan to 2024, and improved terms including lower interest rates across all three facilities. Notably, DLR has secured commitments for the full recast amount from both existing and new lenders, signaling strong support for the transaction.
Key Highlights
- 1Digital Realty is undertaking a significant recast of its global unsecured revolving facility and term loan facilities.
- 2The company expects an increase in the borrowing capacity of its global unsecured revolving facility.
- 3Maturities for the revolving facility and the 5-year term loan are expected to be extended to 2024.
- 4Lower interest rates and improved terms are anticipated across the recast facilities.
- 5Digital Realty has received commitments for the entire borrowing capacity being sought.
- 6Both existing and new lenders have committed to the recast, indicating strong market confidence.
- 7The recast is expected to close later in October 2018, subject to definitive documentation.
Frequently Asked Questions
This 8-K filing announces Digital Realty's intention to recast its primary debt facilities, which include a global unsecured revolving facility and two term loan facilities. The recast aims to increase borrowing capacity, extend maturities, and reduce interest rates.
The recast is expected to provide Digital Realty with increased financial flexibility through higher borrowing capacity, improved cost of debt with lower interest rates, and extended debt maturities, enhancing its capital structure and liquidity profile.
Yes, the filing states that Digital Realty has received commitments from both existing and new lenders for the entire borrowing capacity being sought in the recast, indicating strong support and successful fundraising efforts.
Digital Realty expects to close the recast of these facilities later in October 2018, contingent upon the negotiation and execution of definitive legal documentation.