Press release from PR Newswire
Digital Realty Trust, Inc. Closes $1.5 Billion Global Credit Facility
Monday, November 07, 2011
Digital Realty Trust, Inc. Closes $1.5 Billion Global Credit Facility16:05 EST Monday, November 07, 2011SAN FRANCISCO, Nov. 7, 2011 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a global provider of data center solutions, today announced that it closed a $1.5 billion U.S. dollar equivalent Global Senior Unsecured Revolving Credit Facility. The expanded revolver, which replaces and improves the Company's prior Corporate Revolving Credit Facility and Asia Pacific Revolving Credit Facility, provides funds for acquisitions, development, redevelopment, debt repayment, working capital and global expansion. Funds may be drawn in U.S., Canadian, Singapore, Australian and Hong Kong dollars, as well as Euro, Pound Sterling, Swiss Franc and Japanese yen denominations. The revolving credit facility matures in November 2015, has a one-year extension option, and can be increased to up to a total of approximately $2.25 billion U.S. dollar equivalent. Pricing is based on the Company's senior unsecured debt ratings and is currently 125 basis points over the applicable index for floating rate advances plus a 25 basis point annual facility fee. Covenants generally are consistent with other BBB-rated REITs. "We are pleased with the very strong lender demand in our expanded credit facility which was oversubscribed with commitments of over $2.1 billion received from 28 financial institutions, including 15 new lenders. We appreciate the support and confidence of our lenders as we continue to expand our business globally," said A. William Stein, CFO and Chief Investment Officer for Digital Realty Trust. "This increased borrowing capacity further enhances our financial flexibility and provides us with immediate liquidity for potential acquisitions and development opportunities in our core markets." About Digital Realty Trust, Inc.Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty Trust's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 98 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 17.4 million net rentable square feet as of October 31, 2011 including 2.1 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 30 markets throughout Europe, North America, Singapore and Australia. Additional information about Digital Realty Trust is included in the Company Overview, which is available on the Investors page of Digital Realty Trust's website at http://www.digitalrealtytrust.com.Safe Harbor StatementThis press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the expanded global revolving credit facility and expected use of the funds. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions including the downgrading of the U.S. government's credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.For Additional Information:A. William SteinPamela M. GaribaldiChief Financial Officer andVice President, Investor Relations andChief Investment OfficerCorporate MarketingDigital Realty Trust, Inc.Digital Realty Trust, Inc.+1 (415) 738-6500+1 (415) 738-6500SOURCE Digital Realty Trust, Inc.