Press release from PR Newswire
Digital Realty Increases Global Revolving Credit Facility from $1.5 Billion to $1.8 Billion
Tuesday, September 04, 2012
Digital Realty Increases Global Revolving Credit Facility from $1.5 Billion to $1.8 Billion07:00 EDT Tuesday, September 04, 2012SAN FRANCISCO, Sept. 4, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data center solutions, announced today that it has expanded its global revolving credit facility from $1.5 billion to $1.8 billion pursuant to the accordion feature under the facility. The global revolving credit facility continues to operate pursuant to its existing terms and conditions and 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. It 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 exercised $300 million USD equivalent of the global revolving credit facility's $750 million USD equivalent accordion feature to further enhance our financial flexibility and provide us with additional liquidity, primarily for our U.S. and European properties and capital program," said A. William Stein, Chief Financial Officer and Chief Investment Officer for Digital Realty. "This is consistent with our ongoing strategy of bolstering our financial resources at the most favorable pricing available in the market." About Digital RealtyDigital 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'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's 108 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 20.8 million square feet as of July 25, 2012, including 2.2 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealty.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 our global revolving credit facility, expected use of the funds and financial strategy. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade 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 or businesses; 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, 2011 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012. 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 Stein Pamela M. Garibaldi Chief Financial Officer and Vice President, Investor Relations and Chief Investment Officer Corporate MarketingDigital Realty Trust, Inc. Digital Realty Trust, Inc.+1 (415) 738-6500 +1 (415) 738-6500 SOURCE Digital Realty Trust, Inc.