Digital Realty Boosts Borrowing Power
September 4th, 2007 By: Rich Miller
Digital Realty Trust (DLR) said today that it has expanded its borrowing power by boosting the limit on its senior unsecured revolving credit facility from $500 million to $650 million. The credit line was expanded to fund additional acquisitions, and convert undeveloped “shell” space into turnkey data centers. The new agreement also allows Digital Realty to take advantage of lower market rates in the wake of the recent Fed rate cut, and gives the company access to additional funds at a time when credit is becoming more difficult to obtain in some market sectors. The new terms that are 0.125 to 0.25 percent lower than the earlier facility, the company said. Sixteen banks are participating in the new credit line, up from thirteen in the previous facility.
“The successful completion of this credit facility provides Digital Realty Trust with greater financial flexibility in the U.S. and abroad at more favorable borrowing costs and a longer maturity,” said William Stein, CFO and Chief Investment Officer for Digital Realty Trust. “We greatly appreciate the confidence and support from our lenders, particularly given current credit conditions, and believe that securing a facility of this magnitude further validates our business model.”